EGRN - Why Shares of China Evergrande Group Are Rising Today
Shares of China Evergrande Group (OTC: EGRN.Y) continued to rally Friday after China's second-largest property developer earlier this week made debt payments on its bonds, and as Chinese regulators mull actions that would help debt-saddled developers in the country. The stock had risen more than 18% as of 1 p.m. EST.
For several months now, the market has been concerned that China Evergrande Group would default on its debt payments, a move that would disrupt markets all over the world. Some even compared the event as potentially similar to what happened with Lehman Brothers during the Great Recession.
On Wednesday, the deadline for the debt payments, investors were concerned that China Evergrande Group might not be able to meet its obligations. But the developer came through just in the nick of time and made the payments, once again avoiding default.
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Why Shares of China Evergrande Group Are Rising Today