China Evergrande Averts First Onshore Public Default

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China Evergrande Averts First Onshore Public Default

China Evergrande Group secured investor backing to delay making payments on a $708 million onshore bond denominated in Chinese yuan, avoiding what could have been its first public default in the country’s domestic bond market.

The move highlights how big Chinese borrowers such as Evergrande can effectively operate in two distinct financial worlds, with creditors onshore sometimes taking a different approach from their international peers, and with markets in China somewhat shielded from defaults offshore.

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