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Creditors and lenders are flocking to Chinese-owned companies Evergrande, betting that Beijing will be forced to rescue the country’s largest debtor.
The rush to buy an Evergrande loan comes with a lot of pension funds, insurance and other financial institutions. He separated himself from the middle class contagious fear in the Chinese stock market as well the global economic system.
“Evergrande is an amazing, but very difficult thing that can happen in a few years,” said Jason Friedman, a colleague at Marathon Asset Management, one of Evergrande’s historic teams.
U.S. investors Saba Capital Management, Redwood Capital Management, Silver Point Capital and Contrarian Capital Management have also bought Evergrande bonds in recent weeks, according to people familiar with the matter.
Evergrande’s future uncertainty grew when he settled in Shenzhen failed to meet deadline in return of an interest rate of $ 83.5m on the dollar-generated price last Friday, which came 30 days before the grace period. Evergrande has not announced the payment or has made another $ 45m coupon due Wednesday.
Although economic interest has shifted to other upcoming jobs in Evergrande, sales of the coup that its coup was due last week have soared, the volume rose to $ 124m on Wednesday, according to Bloomberg data.
Louis Tse, director general of Hong Kong Wealthy Securities, said the “over-selling” of Evergrande stocks in recent plans was driven by a lack of credit card buyers thinking that Beijing could restructure rather than allow the company to collapse.
“He is confident that whatever happens at Evergrande as a whole, there will be an answer,” said Tse.
Restoring a loss from Evergrande will be a daunting task. The company said Wednesday had it sold 20 percent to a Chinese bank to raise $ 1.5bn but this was equivalent to less than 1% of its total debt of more than $ 300bn.
The sellers said many of the long-term creditors had already left Evergrande before the end of the week, with cyclists on their way – a process called underground feeding.
“These executives are the ones who have the most out of their debt,” said a Hong Kong-based broker.
Evergrande, one of the largest lenders in Asian dollar markets, owns $ 20bn of private equity firms. Mature bonds in March 2022 sold about $ 0.26 per dollar this week.
A salesman at the family office in Hong Kong said he bought the Evergrande loan last week in the hope that the Chinese government would work on restructuring the country’s largest corporations.
The People’s Bank of China, the largest bank, told the country’s financial institutions this week to protect “sustainable and sustainable development” in the real estate market and to protect the “rights and interests” of home buyers.
“I bet the thing should be put in court, as through a cheaper price, debt repayment [swap], or whatever, ”said Investor.
He bought a letter issued by Hengda Real Estate, the largest company in Evergrande, when it was selling for about $ 0.16 per dollar. She expects to double her income in the coming months.
“This is not a summary but many Chinese corporations fail to sell the above,” he said. “I want 30-ish.”
The seller quotes from a Chinese company for a fee of $ 0.20-0.30 per dollar, although it was incorrect and in some cases government-led efforts. He included Beijing-based technology companies Tsinghua Unigroup and Peking University Founder Group, as well as Chinese manufacturer Fortune Land Development.
Markets are preparing for the ever-repayment deadline at Evergrande on October 11, when the developer is expected to pay around $ 150m for three dollars.
Loans at US Saba, Redwood, Silver Point and Contrarian declined to comment.
Additional reports of Wang Xueqiao in Shanghai and Thomas Hale in Hong Kong