• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

China Evergrande bonds suspended as prices slump

September 6, 2021 by David Barret Leave a Comment

September 6, 2021

By Andrew Galbraith

SHANGHAI (Reuters) – Bonds issued by heavily indebted developer China Evergrande Group plunged on Monday on growing investor worries over the company’s ability to pay its debts, prompting China’s stock exchanges to halt trading.

The Shanghai Stock Exchange said in a statement that it had temporarily suspended trading in China Evergrande Group’s 6.98% July 2022 corporate bond following “abnormal fluctuations.” The exchange had also suspended trading in the bond on Friday.

Shanghai exchange data showed the bonds sliding more than 25% to a low of 40.18 yuan after the resumption of trade on Monday afternoon, reflecting investor doubts that Evergrande will be able to repay investors in full on the bond’s maturity next year.

The company’s 5.9% May 2023 Shenzhen-traded bond, which was also suspended from trading, fell more than 35% after trading resumed on Monday afternoon.

The slump in bond prices on Monday comes after China Securities Depository and Clearing Co. (CSDC) on Friday effectively erased their value for use in collateral repo trading by reducing the “conversion ratio” of the July 2022 bond to zero, effective Sept. 7.

Other Evergrande bonds, including the May 2023 Shenzhen bond, had been included on a CSDC table of conversion ratios on Thursday for use on Sept. 6, but were not included in Friday’s table.

The conversion ratio determines leverage limits for repo financing given a specific bond pledged as collateral. CSDC is owned by the Shanghai and Shenzhen stock exchanges.

A director at a local brokerage said that the reduction in the conversion ratio was a “grey rhino” – a highly obvious yet ignored threat. “It was bound to happen.”

China Evergrande declined to comment.

Worries surrounding Evergrande, which has been scrambling to raise funds to pay lenders and suppliers, have spilled into broader concerns that a debt crisis could send shockwaves through China’s banking system.

On Friday, an index of high-yield Chinese dollar issuers fell to its lowest level since spring 2020.

(Reporting by Andrew Galbraith; Additional reporting by Clare Jim in Hong Kong; Editing by Shri Navaratnam and Emelia Sithole-Matarise)

Source Link China Evergrande bonds suspended as prices slump

David Barret
David Barret

Related posts:

  1. Best WordPress hosting of 2021
  2. Inflation shock and ECB hawks keep euro near 1-month high
  3. Soccer-Ronaldo claims world record with late late show
  4. U.N. warns catastrophe looms in Ethiopia’s north, urges government to end de facto aid blockade

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • There’s A Vast Superplume Hidden Under East Africa That May Be Causing It To Split
  • Fast Leaf Hypothesis: Scientists Discover Sneaky Way Trees Use Geometry To Hog Nutrients
  • Watch: Rare Footage Captures Two Vulnerable New Zealand Species “Having A Scrap”
  • Beautiful Elk Spotted In Northern Colorado Has 1-In-100,000 Coloring
  • Mesmerizing Cosmic Dust Rainbow Caught By NASA’s PUNCH Mission
  • Endangered “Forgotten” Penguins Lay 1.5 Eggs At A Time In Bizarre Breeding Strategy
  • Watch Spellbinding Footage Of A “Fog Tsunami” Rolling Over Lake Michigan
  • What Happened When Scientists Exposed Human Cells To 5G? Absolutely Nothing
  • How Many Supernovae Are Happening In The Universe Every Second? More Than You Think
  • This View Of The Pacific Will Change The Way You See Planet Earth
  • Decapitated Dolphin Found On Remote US Island – And NOAA Wants To Know Who’s To Blame
  • Earth’s Strongest Solar Storm Ever Hit In 12350 BCE – Could It Have Been A Fabled Super Solar Storm?
  • How Bright Is The Earth From The Moon And Could You Read By It?
  • New Powerful Antibiotic That Kills Superbugs Found Hiding Deep In A Chinese Mine
  • Infant Becomes First Human Ever To Receive Personalized CRISPR Gene Therapy Treatment
  • Montana Passes Bill Allowing Doctors To Prescribe Experimental Drugs Without FDA Approval
  • Humanity’s Longest Prehistoric Migration Was 20,000km On Foot – And We Now Know Who Took It
  • New Hypersonic Rotating Detonation Rocket Engine Passes Real-World Milestone
  • “This Story Is A Good One”: 40 Years Ago, Scientists Discovered A Hole In The Ozone Layer And Saved The Planet
  • “One Of World’s Largest Copper, Gold, And Silver Resources” Found In South America
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version