The central bank China described the risk of contagion from the real estate giant as “controllable” Evergrande to the financial sector, according to foreign media reports.
Local authorities “carry out a risk elimination and resolution work in accordance with the principles of the law and commercialization,” said a person in charge of the People’s Bank of China, Zou Lan, in a contact with the press this Friday, October 15, according to Shanghai Securities News, a medium that depends on the official Xinhua news agency.
With more than $ 300 billion in debt, Evergrande has been on the brink of collapse for weeks, which could have repercussions for the whole of the second economy world.
In parallel, the Chinese authorities and state media have been quite silent on the crisis.
Evergrande “has been managed very badly”, diversifying “blindly”, which has caused “an explosion of risks”, estimated Zou.
At Friday’s appearance, Zou said Evergrande should accelerate the sale of assets and the resumption of construction of its projects, for which the authorities will provide financial support.
Chinese developers face more than $ 500 million in coupon payments for their high-yield bonds before the end of the month. Refinitiv data shows that payments from Kaisa Group Holdings and Fantasia Holdings are due this weekend.
“In some cities, property prices went up too fast, causing the approval and underwriting of personal mortgages to be restricted,” Zou said, referring to the first three quarters of this year.
“Once house prices stabilize, the supply and demand for mortgages in those cities will also normalize,” he said.
With information from AFP and Euro News.
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
