Evergrande Crisis Pushes China Builders to Avoid Bond Defaults

The video discusses the current state of bond payments in China, highlighting a $150 million payment due and the potential market contagion. The focus has shifted from Evergrande to other developers like Modern Land and Xinyuan, who are proposing delays or reductions in bond payments. The Chinese government is observing the situation, while U.S. dollar high-grade bonds in China yield over 17%, indicating market stress.

What is the main concern regarding the $150 million in coupon payments due this week?

• The payments are expected to be made on time.

• There is a risk of contagion or spillover in the markets.

• The payments have already been defaulted.

• The payments are being made in local currency.

Which company proposed delaying a bond payment by three months?

• Evergrande

• Fantasia Real Estate

• Modern Land

• Xinyuan Real Estate

What was the unexpected event involving Fantasia Real Estate?

• They made all their payments on time.

• They announced a surprise default.

• They acquired another real estate company.

• They received government bailout.

What is the current approach of the government regarding the real estate crisis?

• Actively intervening in the market.

• Observing the situation to see its impact.

• Providing financial aid to all companies.

• Encouraging foreign investment.

What is the current yield on U.S. dollar high-grade bonds in China?

• Below 5%

• Exactly 15%

• Above 17%

• Between 5% and 10%