Chinese giant Evergrande avoids default
Evergrande reportedly made a payment of around 72 million euros to honor an interest payment.
Hector RETAMAL AFP / File
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The promoter Evergrande avoids in extremis a default of payment.
According to information from Chinese state media,
Securites Times
, Evergrande made a payment of around 72 million euros to honor this interest payment.
A transfer from the Chinese real estate giant made just before the deadline set for this Saturday, October 23.
Global markets, which feared a bankruptcy of the company that could have rocked the Chinese economy, welcomed the news.
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It is a real relief for the world markets which, upon the announcement, reacted to the rise on Friday.
Investors are reassured that the payment of this deadline by Evergrande for the moment avoids the risk of bankruptcy.
The hypothesis of a default by the real estate group panicked the international markets in September, they feared repercussions on the Chinese financial system.
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Also to listen: Evergrande, a "warning" for the Chinese economy
In the wake of the Chinese media's announcement, Evergrande's share gained 4% on the Hong Kong stock exchange.
Thursday, its title had fallen by more than 10% at the resumption of quotations after two weeks of interruption.
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To read also:
The Chinese Evergrande falls on the stock market, the fear of bankruptcy resumes
The real estate group, one of the largest in China, is weighed down by a colossal debt of 260 billion euros.
Its financial situation is closely scrutinized by investors, as a possible bankruptcy could slow the growth of the world's second-largest economy.
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