Another Big Real Estate Default In China

China's housing ministry moves to stabilize property markets as home prices skyrocket in five cities, July 29, 2021. VCG

Zero Hedge: Default Of Second Chinese Developer Sparks China Junk Bond Meltdown As Contagion Explodes

As we expected, Evergrande is only the first cockroach.

With the world waiting to find out the fate of a $260 million bond issued by Jumbo Fortune Enterprises which is guaranteed by Evergrande, and which has no grace period so an event of default could take place as soon as this week (the bond has five business days to make payment subject to administrative and technical error), overnight, stocks and bonds of China’s heavily leveraged property tumbled after a failure by smaller developer Fantasia Holdings Group to repay notes deepened investor concerns about the sector’s outlook. The non-payment forced S&P to downgrade Fantasia (1777.HK) to selective default earlier this morning.

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Update: Chinese developer misses bond payment as stress spreads beyond Evergrande crisis (CNBC)

WNU Editor: These missed bond payments are just more signals that the Chinese economy is under stress. Widespread electrical grid failures are also another sign that things are not going well in China.

More on China's power crisis is here .... China Hit by Worst Power Crisis in a Decade (Legal Insurrection).