China Evergrande Group's main unit, Hengda Real Estate Group, applied to suspend trading of its onshore corporate bonds following a downgrade, as the country's No.2 property developer wrestles with a liquidity crisis
SummarySuspension points to higher chance of default - analystsHONG KONG/SHANGHAI, Sept 16 - China Evergrande Group's
With total liabilities of more than $300 billion, Evergrande is scrambling to raise funds as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or a government bailout.Suspension of trade in Hendga's onshore corporate bonds indicates an increasing likelihood of defaults and restructuring, market participants said.
A bond trader, who declined to be identified, said that the changes in the trading mechanism were likely aimed at limiting participation and curbing volatility.The company's January 2023 Shenzhen-traded bond was last quoted at 24.99 yuan on Wednesday, and its Shanghai-traded May 2023 bond traded at 30 yuan.
A report by CreditSights this week said the probability of liquidation was low if Evergrande defaults.
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