The liquidity and funding access of China Evergrande Group (Evergrande) are shrinking severely, as demonstrated by an announced material drop in sales, a fall in the cash balance, and the continued use of physical properties to settle payments. The company is negotiating repayment terms and two of its subsidiaries have failed to meet guarantee obligations on wealth management products to retail investors. We believe the company may not be able to service debt in time, which will lead to a default scenario including the possibility of debt restructuring. On Sept. 15, 2021, S&P Global Ratings downgraded Evergrande and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. to 'CC' from 'CCC'. We also lowered our long-term issue