Evergrande main unit says cannot guarantee that financial obligations will continue to be met

A statement released by Evergrande main unit, Hengda Real Estate

Evergrande

The statement reads that it has not made substantial progress in disposing Evergrande assets and that the firm cannot guarantee it will be able to continue to meet financial obligations under its contracts.

Adding that if Evergrande fails to meet obligations and cannot reach alternative plans with creditors, it will have a significantly negative impact on the group.

That’s a bit concerning ahead of the 29 October deadline for the next offshore bond payment due date lapse. Risk trades are taking the headline in stride for the most part but expect nerves to show up if there are more default rumours in the next few days.

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