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EXPLAINER: Chinese builder’s debt struggle rattles investors

KVIA

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Global investors are watching nervously as one of China’s biggest real estate developers struggles to avoid defaulting on tens of billions of dollars of debt. That’s fueling fears of possible wider shock waves for the Chinese financial system. Chinese regulators have yet to say what they might do about Evergrande Group. Economists expect Beijing to intervene if Evergrande and lenders can’t agree on how to handle its debts. But any official resolution is expected to involve losses for banks and bondholders. Investors are watching how the developer headquartered in the southern city of Shenzhen near Hong Kong handles an interest payment due Thursday on one of its bonds.

Associated Press

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