Chinese Evergrande is on the brink of default?

NEW DELHI: Chinese company Evergrande has started to repay investors in its wealth management business with property, as the world's most indebted real estate developer faces a key test this week.

Major banks have reportedly been told that they won't receive interest payments on loans that are due Monday, while interest payments of $84m (£61m) on the firm's bonds are also due on Thursday.
The company's shares fell by more than 10% in Hong Kong trade on Monday.
The property giant's deepening debt problems have triggered fears over the impact its potential collapse could have on China's economy.

Evergrande grew to be one of China's biggest companies by borrowing more than $300bn (£217bn).
Last year, Beijing brought in new rules to control the amount owed by big real estate developers.
The new measures led Evergrande to offer its properties at major discounts to ensure money was coming in to keep the business afloat.
Now, it is struggling to meet the interest payments on its debts.
This uncertainty has seen Evergrande's share price tumble by around 85% this year. Its bonds have also been downgraded by global credit ratings agencies.

Businessman Hui Ka Yan founded Evergrande, formerly known as the Hengda Group, in 1996 in Guangzhou, southern China.
Evergrande Real Estate currently owns more than 1,300 projects in more than 280 cities across China.
The broader Evergrande Group now encompasses far more than just real estate development.
Its businesses range from wealth management, making electric cars and food and drink manufacturing. It even owns one of country's biggest football teams - Guangzhou FC.
Hui has a personal fortune of around $10.6bn, according to Forbes.