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Sinic Holdings Group has become the latest to warn of default as the property market in China seemingly turns cold.
The Shanghai-based developer said in a filing that it doesn’t expect to repay a $250 million dollar bond due Oct. 18 with $694 million in dollar bonds outstanding.
That follows a default by Fantasia with Modern Land trying to delay deadlines in what might be classed as a default.
Evergrande has missed a third bond payment, with $150 million due on Monday not paid to bondholders in time.
Overall there’s an estimated $92.3 billion due next year in bond payments by Chinese developers with many on the brink of officially defaulting.
Any US hedge fund or pension plan that has bought bonds in China will probably lose all that they put into it. China can’t pay its domestic creditors, much less those from a foreign country. Any payouts would go to Chinese creditors first.
So in a few months watch for signs of some fallout in America. The US government will probably have to consider bailing out pension funds.
China’s economy is beginning to crash. This will spill over into countries around the world. Banks will again tell us that all is well, nothing to worry about—until the day they shut down.