Evergrande Declines Further After S&P Says Default Is Likely
- Chinese developer faces interest payments on bonds Thursday
- Citi analysts latest to say crisis not China’s ‘Lehman moment’
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China Evergrande Group slid deeper in equity and credit markets Tuesday, fueling concerns about broader contagion after S&P Global Ratings said the developer is on the brink of default.
The distressed developer’s shares in Hong Kong dropped as much as 7% before finishing down just 0.4%, still settling near a 10-year closing low. Its 8.25% dollar bond due 2022 fell 0.3 cent to 24.9 cents, leaving it down some 75% since late May. The junk-rated company is the biggest issuer of high-yield notes in Asia.