Evergrande eases market jitters with debt payment

Ailing Chinese property giant Evergrande has eased market jitters, for now at least.

The firm said Wednesday (September 22) that it would make a payment due on a domestic bond.

That calmed fears of an imminent default, with the potential to unleash financial chaos in China and beyond.

China's central bank also helped, injecting $14 billion into the banking system in a signal of support.

But the worries are far from over.

Evergrande remains weighed down by around $300 billion in liabilities.

It owes money to countless banks and other lenders, as well as retail investors and suppliers.

That means the impact of any collapse would be complex and uncertain, raising fears of contagion across bond and stock markets.

Evergrande has also made no mention of its plans regarding another bond payment due on Thursday (September 23), and one due next week.

Even so, Wednesday's news did help to lift markets worldwide.

European benchmark indexes rose around 1% in early trade.

Evergrande's Frankfurt-listed shares jumped by around a quarter.

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