It was a bit quiet around Chinese real estate company Evergrande. But now investors and business partners are shocked again: it’s about finances again.
The heavily indebted Chinese real estate giant evergrande Warns of possible payment difficulties. After a review of the financial resources, there can be no guarantee that the group will have sufficient funds to meet its financial obligations, the company said on Friday evening.
The government of the Chinese province of Guangdong, where Evergrande is headquartered, also announced on Friday that it had sent a working group to the group “to reduce risks and protect the interests of all parties involved”. Evergrande chief Xu Jian was asked to speak by officials.
Exchange supervision in China weighs in
China’s stock exchange regulator tried to allay fears of a growing crisis. According to a statement from the authority, the impact of Evergrande’s events can be controlled.
Evergrande has been in deep trouble for months and is considered the world’s most indebted real estate company. There is an urgent need to raise funds to be able to make timely payments to banks, suppliers and bondholders. The company is so large that some experts fear a “risk of infection” for China’s economy and beyond. Further interest payments on the bond will be due in the coming weeks and months.
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