Bloomberg quoted sources as saying that China’s State Council Financial Stability Development Committee met with Hui Kayan, chairman of the board of directors of China Evergrande, at the end of last month, asking Evergrande to resolve its debt woes as soon as possible to avoid triggering financial risks. The report quoted one of the sources as saying that the official asked Hui to consider introducing strategic investors and other means to solve the debt problem as soon as possible; another source said that Hui is currently discussing options with local governments and other parties.
The source also said that as early as May this year, the People’s Bank of China and other regulators had also talked to Evergrande, urging it to speed up the sale of assets, reduce debt and pay off its liabilities in a timely manner. China Evergrande, the People’s Bank of China and the Banking and Insurance Regulatory Commission have not responded yet.
China Evergrande’s total debt has risen to RMB 1.95 trillion at the end of last year, and the group’s share price has fallen 36% year-to-date to a four-year low, but Chinese regulators have not made a clear statement on Evergrande’s debt.
In September last year, a “plea letter” from Evergrande to the Guangdong Provincial Government was circulated on the Internet, which was about the official support for the major asset restructuring of Evergrande Real Estate and Shenzhen Special Economic Zone Real Estate Group, and said that if Evergrande Real Estate could not complete the restructuring on time, it might lead to a break in its cash flow, which would cause Evergrande Group to have a lot of problems in related banks, trusts and other financial institutions and bond markets. funds and other financial institutions and the bond market, which in turn will generate financial systemic risks and social risks, trigger legal proceedings or rights defense actions against the parties to the transaction and the regulatory authorities, or trigger large-scale group rights defense, and seriously affect employment and social stability.
In addition, the Hong Kong media recently reported that Hong Kong’s three major disciplined forces senior in March this year, and senior state-owned enterprises, a total of nine people attended the same dinner, did not comply with the gathering restrictions were fined, some of whom were involved in rape cases. Friday (9) a media disclosure, the presence of the Evergrande Group management