Defaults in China Continue

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.

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