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Good news from Chinese developer Evergrande

Good news from Chinese developer Evergrande

The main division of the indebted Chinese real estate company Evergrande announced that it will pay timely interest on domestic bonds due on Thursday, which are worth 232 million yuan ($ 35.88 million). The announcement that came at a time when Evergrande was approaching the key deadline for paying interest on the dollar bond eased the great nervousness in the markets.

China is the world's second largest economy. World markets fear the risk of infection. The negative impact has already come to Europe this week, the main indices, including the DAX and the FTSE, have fallen. The Hong Kong Hang Seng index also fell by about 3% at the beginning of the week.

Sentiment in the industry is deteriorating every day and fears of bankruptcy have already begun to have a negative impact on US futures. If the company is not restructured, China Evergrande shareholders and bondholders will suffer.

evergrande

Performance of China Evergrande Group over 5 years (Source: Investing.com)