The Ministry of Housing and Urban Rural Construction of China has informed major banks that China’s Evergrande Group, a major real estate developer, is unlikely to be able to pay interest due on September 20th. Bloomberg News reported on the 15th as a story of several people familiar with the situation.
According to the report, China Evergrande continues to discuss partial borrowing in the direction of deferred repayment and rollover. The ministry said it held meetings with several banks this week.
Reuters faxed a comment to the Ministry of Housing, Urban and Rural Construction, but has not responded at this time. China Evergrande has not responded to the interview offer.
Financial information service REDD reported last week that the Evergrande Group of China had informed two banks that it would suspend interest payments due this month.
(Source: Reuters)
It is assumed that the risk aversion mood may increase due to China’s evergrande risk alert. In that case, we believe that it will be easier for buyers to gather for items that tend to be seen as safe assets such as the Japanese yen, Swiss francs, and gold.
Today, the buying of Japanese yen has strengthened, but pay attention again to gold, which is in a position where it is easy to grow and buy.
