Evergrande, Kaisa cut by Fitch to default
Ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group. They stated that they had defaulted on offshore bonds. Also, Kaisa had started work on restructuring its $12 billion offshore debt. The downgrades to the restricted default status come even though Evergrande. And Kaisa have not officially announced defaults that could result in […]
Asian tech shares jump, China property stocks rally
Tech stocks climbed in Asia, following U.S. peers higher. The Chinese property stocks rallied following a surprise interest payment by debt-ridden property developer China Evergrande Group. Also, the cyclical stocks dragged amid worries that central bankers will need to tighten monetary policy into slowing growth in order to tackle persistent inflation. Regional bond yields rose with […]
City’s exposure to Evergrande is very minimal-Hong Kong finance Chief
Hong Kong’s exposure to debt-laden developer China Evergrande Group is very minimal at 0.05%. This is of banking assets, South China Morning Post reported, citing the city’s finance minister. Financial Secretary Paul Chan told the newspaper that it is very minimal and won’t cause them any systemic risks. He added that he had arrived at […]
Yen sinks, Aussie climbs as Evergrande contagion fears recede
The safe-haven yen sank to its lowest in nearly three months. From a one month low, the Australian dollar continued to recover. The fears of widespread contagion from China Evergrande Group receded is the main reason for this. The yen also fell as higher U.S. yields attracted Japanese investor money. From July, the U.S. yields […]
Evergrande crisis spill beyond China
China Evergrande have put investors on guard for evidence that the crisis may be spilling over into broader markets. Evergrande was once China’s top-selling property developer. They owe $305 billion and has run short of cash. Investors are worried that a collapse could pose systemic risks to China’s financial system. There have been few signs […]
Dollar wallows near one week low
The dollar wallowed near its lowest level in a week. This is because, the improved risk sentiment wiped out recent gains amid easing concerns about contagion from a potential China Evergrande Group default. Risk appetite returned, lifting oil and global equities. The 10-year U.S. Treasury notes hit the highest since July overnight at 1.437%. That […]
China’s Evergrande chairman seeks to reassure investors
China Evergrande’s chairman said that they will make it a top priority to help wealth investors to redeem their products. This is as the investors await a key deadline for a dollar-bond coupon payment. Hui Ka Yan said that the company was striving to ensure quality delivery of properties. He insisted on the importance to […]
Market impact from Evergrande debt woes
HSBC Holdings PLC CEO says that they are expecting the debt problems involving embattled property developer China Evergrande Group to have an impact on capital markets. But there is no direct impact on the bank seen by them. Noel Quinn said at a Bank of America conference that he would be naive to think that […]
One month high-Dollar, Evergrande risks
The dollar held below a near one-month high. This is because the investors focused on two key risks. One is the Chinese property developer Evergrande and the other one expected pace of U.S. monetary policy tightening. The dollar index stood at 93.226 in early Asian trade. The euro changed hands at $1.1725. The common currency […]
Sink in World shares, because of Evergrande
World stocks sold off while safe-haven assets gained as troubles at property group China Evergrande fed concerns about spillover risks to the economy. In the upcoming Central bank meetings, this sparks a fresh investor worry. MSCI’s gauge of stocks across the globe shed 1.63%. And then, the Wall Street’s benchmark S&P 500 sagged 1.7% and […]