Evergrande, China's No.2 property developer, warned it faces a cash crunch
Evergrande warned of cash troubles yesterday and fear is spreading Friday in China
- The group's 4 yr bond has been halted in trade
- Shares traded up but have given back their gains today.
The group warned Chinese officials it faces a potential default. Fears are such a large default could become a systemic issue.
Issues at Evergrande are not out of the blue, this particular concern has been bubbling since at least late August.
Evergrande is seeking approval to list on the Shenzhen stock exchange by January 31. If investors refuse to extend the deadline, Evergrande will need to repay as much as around $19bn, equating to circa to 92% of its cash and cash equivalents.