Chinese stocks skid as Evergrande’s debt restructuring goes off the rails | Forexlive

Shares of Evergrande are down 20% and broader Chinese real estate stocks are down 2.5% after the embattled real estate group offered signs that its restructuring plan was failing.

Evergrande Group said it “is unable to meet the qualifications for the issuance of new notes under the present circumstances” due to a regulatory probe.

This comes after an announcement late last week that Evergrande was postponing a creditors’ meeting scheduled for today and tomorrow. The company is trying to swap maturing debt for longer-term notes but it’s not going according to plan.

“Based on the company’s current situation and consultations with its
advisors and creditors, the company considers it necessary to re-assess
the terms of the proposed restructuring to meet the company’s objective
situation and the demand of the creditors,” Evergrande said.

The pain in China may be spilling over to broader risk assets with AUD/USD now under some moderate pressure, down 18 pips on the day to 0.6423.