Reuters: China urges state-backed companies to buy assets of real estate giant Evergrande

Reuters: China urges state-backed companies to buy assets of real estate giant Evergrande


September 28, 2021 13:59 GMT

Although the government does not plan to directly intervene, in this way it seeks to avoid a financial crisis in the event of a company collapse.

Chinese authorities Designed to prevent the collapse of Evergrande from causing a financial crisis The country’s largest, prompting state-owned companies and government-backed property developers to buy assets from the real estate giant, according to reports. Reuters Citing unnamed officials familiar with the matter.

According to sources, one of these agreements is about to expire in Canton, where a construction company can take over the stadium being built for guangzhou football, A local football club owned by Evergrande, whose cost is calculated at approx 12 billion yuan ($1900 million). The deal will also include residential projects around the sports complex.

On the other hand, according to reports, potential buyers of Evergrande’s assets in that city will receive “political and commercial considerations” in return.

unpaid debts

It is estimated that real estate giant Evergrande owns a passive who transcends 300,000 million dollars It affects more than 250 banks and non-banking entities. Last week, the company did not pay interest of $83.5 million and has a deadline of Wednesday, September 29, for a payment of $47.5 million..

Meanwhile, Beijing is trying to stem any negative impact on the financial system due to the crisis that Evergrande is going through, which the Chinese authorities are already investigating. In particular, the Shenzhen financial regulator opened a Search the unit that manages legacy company.

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