China Evergrande Update: Jumbo Fortune Enterprises set to default on its $260 million payment
|With Chinese traders returning to the market following a week-long holiday, the concerns pertaining to the country’s indebted property sector have returned invariably, with the latest news coming out from Fantasia Holdings and Jumbo Fortune Enterprises, which is guaranteed by China Evergrande Group.
Reuters reports that Jumbo Fortune was scheduled to make a payment of USD 260 million on October 3, which it missed. However, a 5-day grace period was allowed for any administrative or technical issues, which is set to expire this Friday.
Separately, it is being reported that trading in China’s property development firm Fantasia Holdings’ bonds of maturity in December 2021 and November 2022 has been suspended.
Market reaction
The above headlines seem to have little to no impact on the Chinese stocks market for now, as the first normal day of trading resumes after the Golden Week holidays. The S&P 500 futures are up 0.18% on the day while USD/CNY is trading around 6.4500, marginally higher on the day.
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