Chinese stocks skid as Evergrande's debt restructuring goes off the rails

<p>Shares of Evergrande are down 20% and broader Chinese real estate stocks are down 2.5% after the embattled real estate group offered signs that its restructuring plan was failing.</p><p>Evergrande Group said it "is unable to meet the qualifications for the issuance of new notes under the present circumstances" due to a regulatory probe. </p><p>This comes after an announcement late last week that Evergrande was postponing a creditors' meeting scheduled for today and tomorrow. The company is trying to swap maturing debt for longer-term notes but it's not going according to plan.</p><p>"Based on the company's current situation and consultations with its
advisors and creditors, the company considers it necessary to re-assess
the terms of the proposed restructuring to meet the company's objective
situation and the demand of the creditors," Evergrande said.</p><p>The pain in China may be spilling over to broader risk assets with AUD/USD now under some moderate pressure, down 18 pips on the day to 0.6423.</p>

This article was written by Adam Button at www.forexlive.com.