ICYMI: Fitch downgrades China Evergrande, sees 'probable' default
The worries continue to mount for China Evergrande
Fitch is the latest to join in on a series of downgrades on Evergrande, adding to growing worries for China's second-largest property developer. Fitch says that:
The downgrade reflects our view that a default of some kind appears probable. We believe credit risk is high given tight liquidity, declining contracted sales, pressure to address delayed payments to suppliers and contractors, and limited progress on asset disposals.
Just be aware that Evergrande has roughly ¥1.97 trillion of liabilities and any failure in meeting those obligations could spark broader risks to China's financial system, in turn also leading to contagion risks for markets abroad in general.