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Evergrande shares rise as company averts dollar bond default

By Mensholong Lepcha

05:34, 22 October 2021

China Evergrande Centre in Hong Kong
China Evergrande Centre in Hong Kong - Photo: Shutterstock

Shares in Evergrande rose over 4% on Friday on reports that the cash-strapped property developer has paid off an $83.5m interest due on a dollar bond averting default at the last minute.

State-affiliated news agency Securities Times reported Evergrande has paid off its interest due days before the end of a 30-day grace period after which the bond would have officially defaulted.

Shares in Evergrande came off an over two-week trading halt to tumble over 12% on Thursday. Evergrande shares recovered to trade higher at HKD2.68 by Friday lunch as Reuters and Bloomberg confirmed the transfer of the $83.5m interest payment citing internal sources. 

Mountain of debt

Property sector in Hong Kong was up over 1.5% as news of the remittance brought temporary relief to investors.

Evergrande still has a mountain of debt estimated at over $300bn.

Financial news agency REDD reported that Evergrande has secured a three month-plus extension on a $260m bond which had matured on 3 October after agreeing to provide extra collateral.

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Hopson Development statement

Earlier this week, Evergrande’s billion-dollar stake sale in its property management unit to real estate peer Hopson Development collapsed, fuelling default concerns with Evergrande.

On Friday, suitor Hopson Development clarified that the deal was terminated after Evergrande asked it to make substantial changes to the terms agreed on 1 October, including “terms of payment of the consideration by paying the consideration to the vendor (Evergrande’s unit) directly instead.”


26,871.85 Price
+0.300% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00


14,326.80 Price
+2.750% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0


0.47 Price
+0.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00406

Oil - Crude

72.94 Price
+1.570% 1D Chg, %
Long position overnight fee -0.0154%
Short position overnight fee -0.0065%
Overnight fee time 21:00 (UTC)
Spread 0.04

Whereas, Evergrande said on Wednesday that it “had reason to believe that the purchaser had not met the prerequisite to make a general offer for shares in Evergrande Property Services.”

Read more: Evergrande loses lifeline as .58bn property deal collapses

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Markets in this article

China Evergrande
1.65 USD
China Evergrande
1.65 USD
China Evergrande
1.65 USD

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