The Chinese property developers have been issuing IOU’s instead of paying their bills as they fall due. These are usally ‘cashed in’ by the recipients leading to a massive market in IOUs:
Real estate developers in the world’s second largest economy are major issuers in the commercial paper market, which saw new issues worth 3.6 trillion yuan ($556.00 billion) in 2020, up 20% from 2019.
Evergrande’s commercial paper debt is about $32 billion, or 10% of the debts on its books.
China’s economic problems just get worse by the day!