On Monday, China Evergrande Group (3333.HK) shares fell 12% to an 11-year low after the company declared it could not guarantee repayment of debt, forcing Chinese regulators to call its chairman.
As the 30-day grace period on a $82.5 million coupon payment due on November 6 comes to an end on Monday, the group's share got hammered
Evergrande, formerly China's leading developer, is struggling under a mountain of debt totaling more than $300 billion. In the event of a collapse, the country's property sector and the rest of the economy could be severely affected.
One of the most indebted developers on the planet said it had received a $260 million demand from creditors in a late Friday filing.
That prompted the government of Guangdong province, where the company is based, to summon Evergrande Chairman Hui Ka Yan.
The Chinese central bank, banks and insurance regulators, and securities regulator have meanwhile reassured the market that any dangers to the larger property industry could be contained.
The People's Bank of China stated that housing sales, land purchases, and financing "has already returned to normal in China"
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