[sgbuffett]

In all developed markets when  a company goes all bond holders are treated equally and compensated fairly based on seniority of their bonds. Whether it is Hyflux or Lehman or some Japanese company this does not change.

Here the Evergrande collapse, it is not clear if they will leave offshore bond holders with short end of the stick. Whie there is a lot of nationalistic fervor to see any "foreign" or western is as bad, doing something like this will send a signal to foreign bond investors to demand bigger returns on Chinese loans.  Thus will result in a heavy price China in the future as off shore money is just a massive river everyone needs to drink from. 

My conclusion is they won't do something so silly and detrimental. You are just going to lose big by favoring your lenders and sending this signal on the bond market.  Chinese companies are big borrowers and have to roll over a lot of debt.

These journalists are just talking for the sake of talking