# Investors brace for rough ride as Evergrande faces payment deadline
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-09-29
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Evergrande bond payment stirs market turbulence fears
Meta Description: As China Evergrande Group faces a bond coupon payment, investors prepare for potential market volatility. Learn more about the embattled property
URL: https://financedigest.com/investors-brace-for-rough-ride-as-evergrande-faces-payment-deadlinehtml

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HONG KONG (Reuters) – Investors were bracing for potential market turbulence on Wednesday as a bond coupon payment for China Evergrande Group comes due, giving the embattled property developer its next test in public markets.

Once the face of China’s frenzied building boom, Evergrande has now become the face of a crackdown on developers’ debts that has spurred volatility in global markets and left large and small investors sweating their exposure.

The company is due on Wednesday to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond. While it does not have any more onshore or offshore bonds maturing this year, it must still make coupon [payments for offshore bonds](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") totalling $547.57 million by Dec. 28.

Evergrande’s troubles slammed [global stock](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") markets earlier this month.

In the [weeks since](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010"), some global investors have shifted their focus to political wrangling in Washington over the U.S. debt ceiling and a rise in [Treasury yields](https://www.financedigest.com/wall-st-indexes-mixed-treasury-yields-tick-up-as-higher-rates-loom.html "Wall St indexes mixed, Treasury yields tick up as higher rates loom") that has pressured stocks. \[.N\]

Any negative [surprise by Evergrande could give stock](https://www.financedigest.com/stocks-u-s-dollar-gain-despite-surprise-weak-china-data.html "Stocks, U.S. dollar gain despite surprise weak China data") market bears more ammunition.

With liabilities of $305 billion, Evergrande has sparked concerns its problems could spread through China’s financial system and reverberate [around the world](https://www.financedigest.com/around-the-world-in-mobile-payments.html "Around the world in mobile payments") – a worry that has eased as damage has so far been concentrated in the property sector.

On Monday, [China’s central bank vowed to protect consumers exposed to the housing](https://www.financedigest.com/us-house-committee-chair-concerned-by-tesla-deals-in-china.html "US House committee chair ‘concerned’ by Tesla deals in China") market and injected more cash into the banking system. The Shenzhen government began investigating Evergrande’s [wealth management](https://www.financedigest.com/wealth-management-consultant.html "Wealth management consultant") unit, the clearest sign yet the authorities could move to contain contagion risks.

(Writing by Ira Iosebashvili; Editing by Sonya Hepinstall)


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