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China debt crunch

China avoids Evergrande blowup for now, but rocky road lies ahead

Developer's $7.6bn in bond payments due next year loom over financial system

The Chinese government worries that Evergrande's debt crisis could pose systemic risks.   © Reuters

SHANGHAI -- The threat of an immediate default by China Evergrande Group receded Wednesday with a pledge by the troubled property developer to meet a key bond obligation, but the risks to China's economy are far from over.

Evergrande said Wednesday that it will make a 232 million yuan payment ($35.9 million) on yuan-denominated debt due Thursday. While has not stated whether it will pay $83.53 million in interest on a dollar bond due the same day, it has a 30-day grace period if it misses this deadline.

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