Evergrande Has Officially Defaulted on Their Debt

• China Evergrande Group, the second largest real estate developer in China, has officially defaulted on its interest payments to international investors for the second time.

• The Deutsche Marktscreening Agentur (German Market Screening Agency - DMSA) has stated that it sees this default of the world’s most indebted corporation as a possible cause for a “Great Reset” or crash for global financial markets.

• The DMSA is one of several groups invested in Evergrande and is preparing bankruptcy proceedings against Evergrande while asking other investors to join in the filings.

• Senior analyst at DMSA Dr. Marco Metzler commented on the situation, stating that “while the international financial market has so far met the financial turmoil surrounding the teetering giant Evergrande with a remarkable basic confidence - one can also say: with remarkable naivety - the U.S. central bank Fed confirmed our view yesterday. In its latest stability report, it explicitly pointed out the dangers that a collapse of Evergrande could have for the global financial system.”

• Groups such as the DMSA have invested in Evergrande bonds whose grace period has expired today, November 11th, 2021. Evergrande would have had to pay $148 million in interest on three bonds no later than today. “But so far we have not received any interest on our bonds,” says Metzler. “With banks in Hong Kong closing today, it’s certain that these bonds have defaulted.”