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KSAT ksat.com 23 Sep, 2021 12:15 am

Fears of global shockwaves from Chinese builder's debts easefacebooktwitterinstagramyoutuberss

Fears of global shockwaves from Chinese builder's debts easefacebooktwitterinstagramyoutuberss
Fears that a Chinese real estate developer’s possible default on multibillion-dollar debts might send shockwaves through global financial markets appear to be easing as creditors wait to see how much they might recover.

The Chinese real estate developer whose struggle to avoid defaulting on billions of dollars of debt has rattled global markets says it will pay interest due Thursday to bondholders in China but gave no sign of plans to pay on a separate bond abroad.(AP Photo/Ng Han Guan) BEIJING – Fears that a Chinese real estate developer’s possible default on multibillion-dollar debts might send shockwaves through global financial markets appeared to ease Thursday as creditors waited to see how much they might recover.Meanwhile, local governments were told to prepare for Evergrande's possible collapse by talking with other developers about taking over its real estate projects and monitoring public anger and possible protests, The Wall Street Journal reported, citing unidentified sources.Evergrande’s debt problems come at a time when Chinese economic growth is forecast to weaken due to a slowdown in construction and home sales due to government pressure on the real estate industry to reduce reliance on borrowed money.

4%, citing the real estate slowdown.Meanwhile, S&P Global Ratings downgraded the debt of a smaller Chinese developer, Xinyuan Real Estate Co.

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