Evergrande teeters on brink of default

Ailing Chinese property developer Evergrande is teetering ever closer to the brink.

By close of Asia business on Wednesday (November 10) it had failed to make some payments due to bondholders.

That's according to two sources close to the matter.

Wednesday was the end of a 30-day grace period for Evergrande to pay up.

The property firm is the world's most indebted developer, with more than $300 billion in liabilities.

A failure to pay would lead to a formal default by the company.

The developer also has coupon payments of $255 million to make on December 28th.

Investors fear that a messy collapse for Evergrande could see a domino effect right across China's vast property sector, with more developers already seeing their credit ratings slashed.

Rival Kaisa Group is looking to raise money to repay its many creditors.

Shares in another rival also plunged on Wednesday.

Fantasia Holdings stock fell 50% after it said there was no guarantee it would meet its financial obligations.

That after it missed a $205 million payment in early October.

On Tuesday (November 9), the U.S. Federal Reserve warned China's property sector could pose global risks.

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