Evergrande Assured Bond Coupon Payment while PBOC Adds Liquidity
Global markets take a sigh of relief while rationally vigilant on Evergrande's stance on dollar denominated bond coupon payment
China Evergrande Group’s (333 HK) onshore property unit – Hengda Real Estate Group Co Ltd set to pay interest payment on yuan denominated 5.80% September 2025, according to an exchange filing filed earlier on Wednesday. However, a timeline for the payout and the amount was not stated in the filling.
Hengda’s coupon payments reportedly totaled 232 million yuan (US$35.88 million). Investors are closely watching the fate of its dollar denominated note totaling coupon payments of US$ 83.5 million due on September 23.
Earlier trading of Evergrande’s onshore exchange traded bonds was halted when Hendga filed for suspension of trading on September 16. Trading resumed the next day through negotiated transactions in an attempt to offset volatility.
Concerns over Evergrande defaulting loomed over the global financial market as markets tumbled globally while stocks in China saw lower sell following exchange closure. Analysts however downplaying with the assumption on the upside risks are not as high as Lehman Brothers.
Hang Seng Index reflects room to breathe with real estate stocks gaining highest among other sectors inching up by 2.97%.
People Bank of China injected 120 billion yuan (US$18.6 billion) into the financial system through reverse purchase agreement. This signals PBOC is “quietly” watching and ready to step in if “trouble doubles”.