Artwork

内容由Patrick Boyle提供。所有播客内容(包括剧集、图形和播客描述)均由 Patrick Boyle 或其播客平台合作伙伴直接上传和提供。如果您认为有人在未经您许可的情况下使用您的受版权保护的作品,您可以按照此处概述的流程进行操作https://zh.player.fm/legal
Player FM -播客应用
使用Player FM应用程序离线!

Evergrande and Kaisa Default!

13:00
 
分享
 

Manage episode 312853081 series 2851541
内容由Patrick Boyle提供。所有播客内容(包括剧集、图形和播客描述)均由 Patrick Boyle 或其播客平台合作伙伴直接上传和提供。如果您认为有人在未经您许可的情况下使用您的受版权保护的作品,您可以按照此处概述的流程进行操作https://zh.player.fm/legal

Link for next suggested piece: Chinese State Owned Developers Rescue Local Governments! - YouTube
Investors are waiting for news about tens of millions of dollars of overdue interest payments owed by Chinese Property Developers Evergrande and Kaisa. The firms both appear to be overdue on payments to bond holders. Evergrande's shares closed at a new record low on Wednesday after falling by 5.5% in Hong Kong trade.
If, Evergrande did fail to make these payments on time, the stage could be set for a massive default by the world's most indebted property developer. It could trigger "cross default" on Evergrande's roughly $19bn of international bonds, putting it at risk of becoming China's biggest defaulter.
A cross default is a provision in a bond or loan agreement that puts a borrower in default if they default on another obligation. Fears about Evergrande's future and the impact of its potential collapse have been looming over the world's second-largest economy for months.
There are some precedents for what is going on in this situation. The Chinese government has taken control of other heavily indebted companies through similar mechanisms in recent years, the best example being HNA Group, which was effectively taken over by local government officials early last year. HNA’s insolvency is the biggest bankruptcy that China has seen since introducing its first bankruptcy law in 2007. A bankruptcy of this size is to a certain extent uncharted territory as less than 100 listed companies have ever gone through bankruptcy proceedings in China.
Additionally, trading in shares of embattled property developer Kaisa was suspended in Hong Kong. In an announcement to the Hong Kong Stock Exchange Kaisa did not give a reason for the halt in trading. However, it came after reports that Kaisa was unlikely to be able to meet a $400m offshore debt deadline on Tuesday.
Kaisa is China's biggest holder of offshore debt among developers after Evergrande.
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle On YouTube

Support the show
  continue reading

192集单集

Artwork

Evergrande and Kaisa Default!

Patrick Boyle On Finance

87 subscribers

published

icon分享
 
Manage episode 312853081 series 2851541
内容由Patrick Boyle提供。所有播客内容(包括剧集、图形和播客描述)均由 Patrick Boyle 或其播客平台合作伙伴直接上传和提供。如果您认为有人在未经您许可的情况下使用您的受版权保护的作品,您可以按照此处概述的流程进行操作https://zh.player.fm/legal

Link for next suggested piece: Chinese State Owned Developers Rescue Local Governments! - YouTube
Investors are waiting for news about tens of millions of dollars of overdue interest payments owed by Chinese Property Developers Evergrande and Kaisa. The firms both appear to be overdue on payments to bond holders. Evergrande's shares closed at a new record low on Wednesday after falling by 5.5% in Hong Kong trade.
If, Evergrande did fail to make these payments on time, the stage could be set for a massive default by the world's most indebted property developer. It could trigger "cross default" on Evergrande's roughly $19bn of international bonds, putting it at risk of becoming China's biggest defaulter.
A cross default is a provision in a bond or loan agreement that puts a borrower in default if they default on another obligation. Fears about Evergrande's future and the impact of its potential collapse have been looming over the world's second-largest economy for months.
There are some precedents for what is going on in this situation. The Chinese government has taken control of other heavily indebted companies through similar mechanisms in recent years, the best example being HNA Group, which was effectively taken over by local government officials early last year. HNA’s insolvency is the biggest bankruptcy that China has seen since introducing its first bankruptcy law in 2007. A bankruptcy of this size is to a certain extent uncharted territory as less than 100 listed companies have ever gone through bankruptcy proceedings in China.
Additionally, trading in shares of embattled property developer Kaisa was suspended in Hong Kong. In an announcement to the Hong Kong Stock Exchange Kaisa did not give a reason for the halt in trading. However, it came after reports that Kaisa was unlikely to be able to meet a $400m offshore debt deadline on Tuesday.
Kaisa is China's biggest holder of offshore debt among developers after Evergrande.
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle On YouTube

Support the show
  continue reading

192集单集

所有剧集

×
 
Loading …

欢迎使用Player FM

Player FM正在网上搜索高质量的播客,以便您现在享受。它是最好的播客应用程序,适用于安卓、iPhone和网络。注册以跨设备同步订阅。

 

快速参考指南