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Evergrande Contagion Concern Sends Riskier Asian Bonds Plummeting: FT

China spends more on 'public safety' than defence, a report by Nikkei says.
A surveillance camera is seen near the Evergrande Center in Shanghai on Sept 22, 2021. China spent $210 billion in 2020 to ensure order but public frustration is said to be growing over the country's strict zero-Covid policy and the 'health codes' on people's phones which allows everyone to be tracked, the report said. Photo: Aly Song, Reuters.


(AF) Contagion from the Evergrande crisis has spread to riskier Asian dollar-denominated bonds, sending yields soaring to 12% from 7% amid deepening concern that troubled Chinese property giant will miss a coupon payment on its own dollar debt, the Financial Times reported.

The surge in an Ice Data Services index – which tracks $428 billion of assets – was the highest since the onset of the coronavirus pandemic and reflects investor worries that the perilous state of Evergrande’s finances has the potential to up-end global markets, the report stated. Full report: Financial Times


Also on AF:

Evergrande Debt Crisis a Risk To China’s Banks, Bonds and Jobs Market


Mark McCord

Mark McCord is a financial journalist with more than three decades experience writing and editing at global news wires including Bloomberg and AFP, as well as daily newspapers in Hong Kong, Sydney and Melbourne. He has covered some of the biggest breaking news events in recent years including the Enron scandal, the New York terrorist attacks and the Iraq War. He is based in the UK. You can tweet to Mark at @MarkMcC64371550.


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