Fears of global shockwaves from Chinese builder’s debts ease

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Fears that a Chinese real estate developer’s possible default on multibillion-dollar debts might send shockwaves through global financial markets appear to be easing as creditors wait to see how much they might recover. Shares of Evergrande Group, one of China’s biggest private sector conglomerates, rose 18% in Hong Kong after the company said it would pay interest to bondholders in China. The company gave no sign whether it would make a payment due Thursday on a separate bond abroad. As details of Evergrande’s $310 billion in debt became clearer, economists said despite likely losses for Chinese banks and other creditors it appears a default would not feed through to financial markets abroad.