Reuters

China Evergrande secures bond extension as property sector turmoil deepens

HONG KONG/SHANGHAI (Reuters) -China Evergrande Group has secured more time to pay a defaulted bond, financial provider REDD reported on Thursday, offering rare respite to the developer even as a debt crisis in the broader property sector deepened with more defaults. News of the three month-plus extension came a day after Evergrande scrapped a deal to sell a 50.1% stake, worth $2.6 billion, in a property services unit that could have eased some immediate pressure on the firm. Evergrande was once China’s top-selling developer but is now reeling under more than $300 billion of debt, prompting government officials to seek to reassure markets that the firm’s problems won’t spin out of control.

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