Explainer: How China Evergrande's debt troubles pose a systemic risk?

Late repayments could trigger cross-defaults as the firm's liabilities involved as many as 128 banks and over 121 non-banking institutions

China Evergrande Group has supplied funds to pay interest on a dollar bond, a person with direct knowledge of the matter told Reuters on Friday, days before a deadline that would have seen the developer plunge into formal default.

News of the remittance will likely bring relief to investors and regulators worried about a default's wider fallout in global markets, adding to reassurance from Chinese officials who have said creditors' interests would be protected.

WHAT IS EVERGRANDE?

Chairman Hui Ka Yan founded Evergrande in Guangzhou in 1996.

It is China's second-largest property developer, with $110 billion in sales last year,