From 5 Min. Forecast
So screams a headline at Zero Hedge about the impending default of China's second-largest property developer Evergrande Group. Or as Ben Hunt of Epsilon Theory puts it: the "story no one is talking about."
In the past couple weeks, it's become apparent Evergrande is flat broke after the company couldn't pay its vendors and contractors. As a result, construction projects have ground to a halt. Not good optics, to say the least.
"The highly indebted company on Tuesday also warned for the first time that it may default on its borrowings if it can't resolve its liquidity problems," says an article at The Wall Street Journal.
"Evergrande… said it has been selling assets and apartment units to raise cash. The group also said that 'with the coordination and support of the government,' it is actively negotiating with suppliers and construction companies to try to get them to resume work on its properties."
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