Evergrande Worries Result In Equity Wobble

Equities have reacted negatively to news that China Evergrande's Hong Kong equity listing, along with its property management unit's listing, will be suspended.

• Do note that several reports have pointed to Evergrande being a guarantor of a US$-denominated bond issued by Jumbo Fortune Enterprises. This $260mn bond matured yesterday (October 3), with the payment falling due today.
• The latest BBG source report on the matter notes that "non-payment of the bond principal would constitute a default as the note has no grace period, although five business days would be allowed if failure to pay is down to administrative and technical error, according to the people. Details of the guarantees weren't broadly known as the note prospectus isn't publicly available and the deal wasn't listed on exchanges."
• The Hang Seng leads the move lower, shedding ~2% early on, while U.S. e-mini futures gave up their early gains and now trade ~0.2-0.3% softer on the session.