So now it’s happened, construction giant Evergrande failed to meet an expired payment deadline on Tuesday. The failure to pay for some U.S. dollar bonds raises the risk of a massive default by the giant.
Meanwhile, the next construction company has also reported a payment default. Kaisa Group Holdings Ltd. (HK: 1638) apparently failed to meet a $400 million first, according to news agency Reuters. Shares of Evergrande’s smaller rival have already lost 75% of their value this year and were suspended from trading on the Hong Kong Stock Exchange today.