rattled global markets in September and October. There was a brief lull in mid-October after Beijing tried to reassure markets the crisis would not be allowed to spiral out of control, but concerns have resurfaced.
Rising concern that the developers' woes spreading to other sectors was visible on Wednesday as the spread, or risk premium, between lower risk, investment grade Chinese firms and U.S. Treasuries widened to a more than five-month high. Founded in Guangzhou in 1996, Evergrande epitomised a freewheeling era of borrowing and building. But that business model has been scuttled by hundreds of new rules designed to curb developers' debt frenzy and promote affordable housing.
Any prospect of Evergrande's demise raises questions over more than 1,300 real estate projects it has in some 280 cities.Reporting by Andrew Galbraith in Shanghai and Clare Jim in Hong Kong; Writing by Sumeet Chatterjee and Ira Iosebashvili; Editing by Stephen Coates and Lincoln Feast.Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
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