Evergrande is now a defaulter as per Fitch

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Evergrande is now in default after the debt payment was missed on Monday that is 6th December 2021.

Evergrande is right now looking like falling apart like anything. It has liquidity issues that will not get solved till their homes get sold. But people currently are not willing to buy from a company that has lost faith from its investors or the general public also.

In the past few weeks, the downfall of Evergrande was majorly visible. Even the Chinese government want them to get out of this and also warned them to clear their debt payment in time.

In this week itself, the price of Evergrande shares was down considerably. From Hong Kong dollar 1.18 to dollar 0.23 which is almost 20% of a drop.

On Monday 6 December 2021 ever Grande was supposed to make a payment of 82.5 million dollars to international investors. Due to the current market issue of ever Grande there have been some liquidity problems. Evergrande’s failure to pay this debt was almost foreseen by many of the people who understand what is going in Evergrande.

After this default, Fitch American credit rating agency has marked Evergrande as the official defaulter. The overseas bonds of Evergrande group China unofficial in default according to a credit rating company called

Fitch has recently become the world’s first big credit rating company to make a sort of declaration. Fitch has also mentioned that they sought the confirmation of payment from Evergrande but did not receive any sort of reply or response to the question.

That is why they have said that they are assuming that this debt was not paid. In the last three months ever Grande has missed quite a few interest payments which they were supposed to pay.

This was still acceptable because they were not in any other formal default making the payment. Credit listing companies like Goldman Sachs, JP Morgan, or Fitch always look after opportunities like these.

All that we can say is this was supposed to happen someday or the other. This has happened this week and marked China’s biggest property dealers in defaults which will resist them getting funds to revive themselves. Will have to look after the future of this.

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