Type to search

China Evergrande Debt Crisis: The Next Flash Points

The China Evergrande debt crisis deepened Thursday as Fitch declared the property giant in default. It must make another 14 bond coupon payments worth almost $1 billion within five months.

China Evergrande
Struggling with $300 billion in liabilities, including $19 billion in international bonds deemed to be in cross-default after missing a payment deadline last month, Evergrande is working to avoid a technical default onshore that would complicate its politically sensitive restructuring. Photo: Reuters


The China Evergrande debt crisis gathered momentum Thursday when the giant property developer was called a defaulter for the first time when Fitch Ratings downgraded it to ‘’Restricted Default’’ status.

China Evergrande debt stands at about $300 billion and Fitch said it did not respond to a request for confirmation on coupon payments worth $82.5 million that were due last month with a 30-day grace period ending on Monday.

“We are therefore assuming they were not paid,” it said.

Watch AF TV: Evergrande boss forced to ditch the jet set to clear debt

Fitch defines a restricted default as indicating an issuer has experienced a default or a distressed debt exchange, but has not begun winding-up processes such as bankruptcy filings, and remains in operation.

The following timeline shows the next bond coupon payments that must be negotiated to avoid a China Evergrande default. There are 14 of them through early May that together total almost $1 billion.


China Evergrande debt crisis deepens after the real estate giant was declared in default for the first time by Fitch Ratings. Here are upcoming dues for Evergrande until May 2022. Asia Financial


By Nitin Bhagat and Vishakha Saxena

Also Read:
China Evergrande Shares Hit New Low as Kaisa Misses Payment
China Evergrande Debt: Hong Kong to Investigate Gifts to Officials

Nitin Bhagat

Nitin Bhagat is an experienced visualizer working as Senior Graphic Designer with Asia Financial News Group. Before joining Asia Financial, Nitin worked for The Times of India with top corporate clients on high-profile custom projects.

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]


AF China Bond