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After China’s Evergrande fell, the debt crisis spilled over to another real estate developer, Fantasia Holdings, after the company failed to pay outstanding debts of $ 206 million.
The company’s dollar-denominated bonds lost almost half of their market value in a massive sell-off yesterday.
As a sign of the deepening debt crisis, Fitch demoted Sinic Holdings from CCC to C due to uncertainty over its ability to repay a $ 246 million bond due October 18.
And shares of Chinese real estate developer Evergrande ceased trading in Hong Kong, prompting markets to worry about the spread of its contagion to the collapse.
Evergrande said it has called for a halt to trading, pending the announcement of a major deal, while its real estate unit, Evergrande Property Services, said the deal included an offer to buy its shares.
Investors fear the collapse of Evergrande could affect China’s already fragile economy, disrupting global growth.
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