Trading on Hong Kong stock market halted amid concerns that foreign bondholders could lose 75% of their investment
Trading in shares of debt-laden China Evergrande was suspended by the Hong Kong exchange on Monday after the enormous Chinese developer missed a key bond interest payment last week, its second offshore debt obligation in a week.
With liabilities equal to 2% of China’s GDP, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world.
The cash-strapped group said on 30 September that its wealth management unit had made a 10% repayment of wealth management products (WMPs), which are largely owned by Chinese retail investors, that were due by the same date.
