Evergrande to make bond coupon payment

China Evergrande agreed to settle interest payments on a domestic bond on Wednesday, while the Chinese central bank injected cash into the banking system, soothing fears of imminent contagion from the debtladen property developer.

Evergrande, Asia's biggest junk bond issuer, is so entangled with China's broader economy that its fate has kept global stock and bond markets on tenterhooks as late debt payments could trigger so-called cross-defaults.

Many financial institutions have exposure to Evergrande through direct loans and indirect holdings, while any defaults will also trigger sell-offs in the highyield credit market. Evergrande's Hong Kong shares did not trade due to a public holiday but rose 40 per cent in Frankfurt to 0.38 euros.