China Debt Crisis Sparked by Evergrande Snares State-Aided CIFI
- Developer missed coupon on Hong Kong dollar convertible note
- CIFI’s woes also spread contagion risk to Country Garden
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China’s ability to contain a deepening property debt crisis has come under more scrutiny, after a private developer with state backing for funding joined an expanding list of bond defaulters.
CIFI Holdings Group Co. has failed to pay a coupon due Oct. 8 on a Hong Kong dollar convertible bond on time. The Shanghai-based firm also warned it may face a similar outcome on offshore debt, after blaming a long Chinese public holiday for delaying payments.