Posted on Sep 19, 2021, 10:44 AMUpdated Sep 19, 2021, 11:30 AM
Is China preparing to experience its “Lehman moment”? Thirteen years after the collapse of the American banking giant which plunged the world into the financial crisis, many observers are asking the question. growing difficulties for real estate giant Evergrande .
The moment of truth is approaching for bondholders of China’s most indebted real estate developer. Interest payments on two bonds come due Thursday, a key test of whether Evergrande will continue to meet its commitments after it has already missed payments from its suppliers and creditor banks. At the end of last week, Beijing warned several big banks that Evergrande could not honor the interest due on Monday.