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China Oversees Accounts, No Payment: Evergrande Update

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WATCH: Thu Ha Chow of Loomis Sayles Investments asys all actions indicate that Evergrande is a controlled explosion.(Source: Bloomberg)
Corrected

China’s housing regulator boosted oversight of China Evergrande Group’s bank accounts to protect funds earmarked for housing projects from being diverted to creditors. The developer’s funds must first be used for construction to ensure project delivery, according to people familiar with the plan. 

Holders of China Evergrande Group’s dollar bonds have been left on edge after several of them said they hadn’t received a coupon payment that was due Thursday. Meanwhile, staff at the firm’s electric vehicle business haven’t been paid, and European banks are trying to reassure investors that their exposure is limited.