Evergrande has approximately $ 300 billion in debt. Now the group will soon no longer be able to meet its financial obligations.
Due to liquidity problems, the Chinese real estate company Evergrande may soon no longer be able to meet its financial obligations.
However, the regulators appease and say that the Chinese financial system is strong and default rates are low.
Evergrande has approximately $ 300 billion in debt.
Chinese real estate giant Evergrande may soon be unable to meet its financial obligations. After reviewing Evergrande's finances, there is no guarantee that the group will have sufficient funds, the company said in a statement on the Hong Kong Stock Exchange.
Shortly thereafter, regulators tried to allay investor fears. They said the Chinese financial system is strong and default rates are low. Most developers are financially sound and Beijing will keep the credit markets going. “The impact of the group's risk events on the stable functioning of the capital market can be controlled,” said the Chinese securities regulator on its website. The central bank and banking regulator made similar statements.
Evergrande is the most indebted property developer in the world, with debts of around $ 300 billion and has a liquidity problem. The situation is made even more difficult by the fact that the government has tightened the rules on corporate debt.
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