Evergrande default 'inevitable' as China's property woes intensify

More defaults likely

China’s property market dilemma has intensified as Evergrande – which has over $300bn in liabilities – once again found itself on the brink of collapse, while S&P Global has warned that its default is "inevitable".

The Chinese real estate giant failed to repay some bondholders before the deadline of another crucial 30-day grace period on Monday (6 December). Evergrande said last Friday that it had received a demand regarding guarantees on $260m of debt. The property firm stated: "There is no guarantee that the group will have sufficient funds to continue to perform its financial obligations." It added that it "plans to actively engage with offshore creditors to formulate a viable restructuring plan". Chinese policymakers faced with 'moral dilemma' to avoid property crisis contagion Mean...