Evergrande Filing on Yuan Bond Interest Leaves Analysts Guessing

  • Chinese developer missed interest payments on loans this week
  • Evergrande has sparked contagion fear across financial markets
Is the Evergrande Crisis a Contagion Risk?
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China Evergrande Group injected a fresh dose of uncertainty into financial markets on Wednesday, issuing a vaguely worded statement on a bond interest payment that left analysts grasping for details.

Evergrande’s onshore property unit said in an exchange filing that an interest payment due Sept. 23 on one of its yuan-denominated bonds “has been resolved via negotiations off the clearing house.” While the comment helped trigger knee-jerk gains in some risky assets, Evergrande didn’t specify how much interest would be paid or when.