China Evergrande Group pulled back from the brink of default by paying a bond coupon before Saturday’s deadline. The property giant now has at least another week to come to grips with a debt crisis. Concerns are growing that Ever grande's cash crunch is spreading to other China property developers. The 8.25% coupon due March 2022 is priced at just 26 cents on the dollar. The coupon payment came at the tail end of a 30-day grace period. Senior Chinese policy makers have tried to reassure investors that risks from Evergrande are contained, even as they signal a reluctance to bail the company out. The 30-day grace period for Evergrande’s next dollar coupon payment ends on Oct. 29. The coupon payment was initially due on Sept. 23. The question is whether Xi can pull off the campaign to bring ‘common prosperity’ to China. Some investors, including credit specialist Marathon Asset Management, have been betting that Evergrande’s debt still offers value. The company needs to pay interest on another four dollar notes this year and has a hefty wall of maturing debt in 2022. Some $7.4 billion coming due in onshore and offshore bonds.
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