Evergrande bondholders shift focus to 30-day grace period

it is uh the central bank issued a laundry list of of uh more activities that should be banned uh saying that this would help to mitigate some of the the hype over crypto so some of the differences in this laundry list one had to do with overseas exchanges which uh the chinese government said that overseas exchanges that offer chinese residents services are now considered illegal that activity and that chinese nationals who work at those exchanges can now be held responsible they also pointed out that anyone found violating any of these these activities and violating financial order are subject to investigation and then for the first time they named certain cryptocurrencies that should not and cannot be circulated in china so those are bitcoin ether and tether what was also interesting was that there was no mention no ban on crypto possession so that is one um activity that a lot of people in the cryptocurrency world here have been watching because they felt that if if china went that far to ban possession that could have a major impact on cryptocurrency trading as of now the chinese government hasn't gone that far but um but it's still this this crackdown is still much broader than before now you mentioned evergrand the saga has now shifted to a 30-day window in which evergrand can still settle the interest payment on a dollar denominated bond uh there has been precedence for this before but mainly for companies that are much smaller than evergrand so they haven't had that same size and scale most people now are focused on the their hope that evergrande is going to follow through with one of the recommendations of the financial regulators and that is to communicate more with their bondholders in order to try to avoid near-term defaults that was one of three uh recommendations from the financial regulators the other two uh being to address some of the housing issues make sure that those homes are delivered to uh chinese people and then also to address the the wealth investors and make them feel as though um they are going to be a top priority so um there's a hope for that but for evergrand we have been seeing more signs of stress not only for evergrand but also in the chinese property sector so for evergrand specifically it lost a shareholder um as of yesterday chinese estate said that they're selling 32 million dollars in their stake and that they plan to to get out of this the company altogether and then um just in some local media reports the local office of the developer sunac is appealing for policy assistance now because of what they said is a turning point in the real estate industry and then land auctions went unsold in hangzhou which is a key base for alibaba and and guys has often been seen as a place that's on the rise because of all the business that goes on in that city shepard smith here thanks for watching cnbc on youtube

Channel: CNBC Television

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Id: FW1mkEUjHqc

Length: 3min 23sec (203 seconds)

Published: Fri Sep 24 2021