Ailing Evergrande seen edging closer to brink
Worried investors have already been protesting.
They want to be repaid money owed by ailing Chinese property giant Evergrande.
But the firm is edging closer to the brink, according to Bloomberg reports on Wednesday (September 15).
It says banks have been told that Evergrande won't make loan interest payments due in the coming days.
That raises the specter of a messy meltdown.
Evergrande has $305 billion in liabilities, owed to many different banks and lenders.
Some think Beijing will have to intervene as a result.
The situation with developers is being watched, says a statistics bureau spokesperson.
Ratings agencies are also keeping a close eye.
Fitch said in a note that any collapse could cause difficulties for some small banks.
Though it said the sector as a whole would be able to ride it out.
The agency, and some analysts, bet that Beijing will at least step in to make sure any homes under construction do get finished.
For now, the Bloomberg report says Evergrande is in talks to extend payments or roll over some loans.
But the firm's vast liabilities leave many wondering what a messy ending might mean for China's financial system.
