Economists say a financial crisis is unlikely but debt could drag on economic growth by diverting money from consumption and investment. So regulators may favor homebuyers at the expense of banks and other investors in Evergrande debt. In addition to bondholders, the company owes 667 billion yuan to construction companies and other business creditors. On Sunday, about 100 people who invested in Evergrande debt through “wealth management products” sold by banks crowded into its Shenzhen headquarters to demand repayment. Andy Wong/AP Rating agencies say Evergrande Group appears likely to be unable to repay all of the 572 billion yuan it owes banks and other bondholders.

Source: Stuff September 19, 2021 20:12 UTC