Eugene Kiernan: Evergrande’s money woes have been hiding in plain sight for years
The troubled Chinese property company has had negative cashflow in eight of the past ten years and its total debt now stands at more than $320 billion. Despite an initial wobble, global markets seem relatively unconcerned, but should they be worried?
Financial markets were rattled last week by the possible failure of Evergrande, the giant Chinese property developer, to meet a number of bond repayments, both domestic and international.
Investors were left in the dark after Evergrande missed a deadline for a $83.5 million interest payment. The firm is yet to make an announcement regarding the payment, which was due on Thursday, leading to further concerns over its ability to support its more than $320 billion of debt.
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