D.he has warned of possible financial difficulties, the heavily indebted Chinese real estate giant Evergrande. After a review of the financial resources, no guarantee can be given 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”. Xu Jiayin, the head of Evergrande, was asked to speak by the authorities.
China’s stock exchange regulator tried to allay fears of a spreading crisis. The effects of the events at Evergrande are controllable, according to a statement from the authority.
Evergrande has been in a deep crisis for months and is considered the world’s most heavily indebted real estate company. There is an urgent need to raise funds in order to be able to pay banks, suppliers and bondholders on time. The company is so large that some experts fear a “risk of contagion” for China’s economy and beyond. Further interest payments on bonds will be due in the coming weeks and months.
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