According to the central bank, most real estate companies in China are stable.
Chinese the risks to the financial system posed by real estate giant Evergrande’s problems are “manageable” and the risks are unlikely to spread wider, the People’s Bank of China says.
These are the few central bank revenues from Evergrande. The last time the central bank commented on the situation was in September and before that directly to the company in August.
Director of Financial Markets of the People’s Bank of China Zou Lan said at a news conference on Friday, the Chinese authorities said the Chinese authorities were trying to resolve the situation “on market terms and in accordance with the principle of legality”.
Zou also said the central bank has asked Chinese banks to finance the real estate sector “stably and calmly”.
Over Evergrande, which is faltering under a $ 300 billion debt burden, has heightened concerns that the company’s problems could also spread more widely to the Chinese real estate market.
However, China’s central bank says Evergrande is its own case and that most real estate companies in China are stable.
Central Bank Zoun believes Evergrande has been poorly managed and the company has blindly expanded its business.
According to Zou, the central bank has urged Evergrande to boost sales of its assets and consider its projects.