The Evergrande Group has announced that it plans to sell off part of its stake in a local bank for about $1.5 billion (10 billion yuan). The property giant owes more than $300 billion in debt, which it has been struggling to pay. It faces a $47.5 million bond interest payment deadline on Wednesday — just days after it missed an $83.5 million payment. Back to news in the state, on Tuesday, Treasury Secretary Janet Yellen warned lawmakers that the federal government could run short of cash to pay its bills by Oct. 18. She said that would happen unless Congress acted quickly to increase the government’s borrowing authority.
CNN Business/Michelle Toh
Evergrande raises $1.5 billion as another debt payment looms
Evergrande has raised $1.5 billion in much-needed cash. But that may do little to help it meet a new bond interest payment due Wednesday.
The Chinese real estate developer has agreed to sell off part of its stake in a local bank for nearly 10 billion yuan (about $1.5 billion). Evergrande made the announcement Wednesday, sending its shares up nearly 16% in Hong Kong.
The company will be selling a nearly 20% stake in Shengjing Bank to state-owned Shenyang Shengjing Finance Investment Group.
In recent days, speculation has been mounting that officials may ask state-owned businesses to support Evergrande.
Over a third of Shengjing Bank is owned by the property giant, and the lender has already been hurt by Evergrande’s troubles.
You can read the full story, here.
Janet Yellen Says U.S. Could Run Out Of Cash To Pay Its Bills In Less Than 3 Weeks
Treasury Secretary Janet Yellen warned lawmakers Tuesday that the federal government could run short of cash to pay its bills by Oct. 18 unless Congress acts quickly to increase the government’s borrowing authority.
The warning, at an appearance before the Senate Banking Committee, comes amid a standoff in Congress over the so-called debt ceiling. Senate Republicans blocked a measure to increase or suspend the debt ceiling on Monday.
Yellen said the exact date was subject to change given the unpredictability of the government’s cash flows. But she made it clear that failure to clinch a deal by mid-October would lead to the first default in U.S history, an event she has described as “catastrophic” for the economy.
“It would be disastrous for the American economy, for global financial markets, and for millions of families and workers,” Yellen told senators.
Continue reading, here.
CNBC/Robert Exley Jr.
Most people who hit their retirement goals are good at doing these three things
There are countless strategies when it comes to saving more money.
But a well-funded retirement often comes down to just three budgeting habits, according to Ken Hevert, a senior vice president at Fidelity Investments.
Committing to regular savings, whether it is a percentage of your paycheck or a specific dollar amount, is the most important thing he says you can do to reach your goals.
Check out this video to see how much Hevert says you should put away regularly and to learn the other two things you will need to do to fund your dream retirement.