Evergrande investors still in the dark as grace period on debt nears end

Global stocks mixed as traders weigh company earnings

Evergrande’s shares have been suspended since October 4th pending the announcement of a “major transaction”. Photograph: Gilles SabriŽ/The New York Times

Evergrande’s shares have been suspended since October 4th pending the announcement of a “major transaction”. Photograph: Gilles SabriŽ/The New York Times

 

China Evergrande Group investors remain in the dark about the property developer’s progress in negotiating stake sales to meet its looming debt obligations, as a grace period on some of its dollar notes enters its final days.

Evergrande has yet to comment on a Reuters report that a yuan bond coupon due Tuesday had been paid. Chinese companies with bonds listed on mainland stock exchanges are typically only expected to post announcements to the bourses if obligations aren’t met. Evergrande has missed initial interest payment deadlines on several dollar bonds since last month, with some notes offering a 30-day grace period before default.

Evergrande’s shares have been suspended since October 4th pending the announcement of a “major transaction” involving its property management unit and Hopson Development Holdings, local media reported at the time. REDD reported Tuesday that the deal had fallen through due to a lack of support from the local Guangdong government.

Global stocks

More generally, global stocks were mixed on Wednesday as traders weighed company earnings and risks from inflationary pressures.

US treasury yields and the dollar were little changed. Nestle and Deliveroo led an increase in Europe’s Stoxx 600 index after both companies forecast faster growth, while Kering led a decline in retailers after slowing sales at Gucci.

US futures were little changed after the S&P 500 closed near a record.

The earnings season has taken some of the spotlight away from concerns about a slowing pandemic recovery, price pressures stoked by energy costs, supply-chain bottlenecks and reduced central bank support. Still, with clouds gathering over the economic recovery, a survey of strategists shows this year’s rally in European equities may have just about run its course. – Bloomberg