Evergrande dialed back plans to repay investors | 03 1月 2022

03 1月 2022, USD/JPY

Evergrande dialed back plans to repay investors

USDJPY trading plan:

China Evergrande Group dialed back plans to repay investors in its wealth management products, in a move that highlights the deepening liquidity squeeze at the property developer that has failed to meet its offshore debt obligations. Evergrande, whose $19 billion in international bonds are deemed to be in cross-default by rating agencies after the developer missed a deadline to pay coupons earlier this month, did not pay offshore coupons due earlier last week. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 115.45 and take profit 115.01.

David Johnson
Analyst of «FreshForex» company
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