Expert: Evergrande Default Likely

Evergrande is supposed to pay $83 million in bond interest on Thursday, and it has another $47 million due at the end of the month. Both bonds would default if it can’t pay the interest within 30 days.

Evergrande is China’s second-largest property developer with $300 billion in outstanding liabilities.

Two weeks ago, media reports revealed it was having issues and wouldn’t be able to cover some loan interest that was about due. Anxious residents filled its headquarters demanding repayment.

Many are now waiting to see if the Chinese Communist Party will try to bail it out to prevent a potential debt crisis, but there’s no indication it will.

NTD spoke with Daniel Lacalle, chief economist at Tressis hedge fund, about what he thinks will happen to Evergrande.