Updated September 25th, 2021 at 18:05 IST
Evergrande exteriors as banks try to calm investors
Trying to dispel investor fears, some Chinese banks are disclosing what they are owed by giant real estate developer Evergrande.
Advertisement
Trying to dispel investor fears, some Chinese banks are disclosing what they are owed by giant real estate developer Evergrande.
The company is struggling with $310 billion of debt.
The announcements came as Evergrande Group promised to talk with some individual investors.
Other creditors waited to see whether Beijing will step in to deal with the crisis
Evergrande's struggle to meet government-imposed debt limits has prompted fears a default might disrupt the Chinese economy or global financial markets.
Ratings agencies say a default is likely.
Economists say Beijing can prevent a credit crunch in China but wants to avoid bailing out Evergrande while it tries to force companies to reduce debt levels.
Evergrande was caught by stricter borrowing limits imposed on real estate last year by regulators who are trying to reduce surging debt levels the ruling Communist Party worries might drag on economic growth that already is in long-term decline.
Regulators have yet to say what Beijing might do, but economists say if the ruling party gets involved, it probably will focus on making sure families get apartments they already have paid for, rather than trying to bail out banks or other creditors.
Advertisement
Published September 25th, 2021 at 18:05 IST
Your Voice. Now Direct.
Send us your views, we’ll publish them. This section is moderated.