The Chinese government is asking local governments to prepare for the possible collapse of China Evergrande Group, according to a report by The Wall Street Journal on Thursday.
- The officials described the actions being ordered as “getting ready for the possible storm” if Evergrande fails to manage its debt affairs in an organized way.
- The local Chinese government has been tasked with preventing potential unrest and mitigating the ripple impact on home buyers and the broader economy, such as limiting job losses.
- Evergrande is facing a series of bond payments in the coming weeks, including a closely monitored deadline Thursday for interest payment on an offshore bond.
- Last week, Evergrande stated that it had contracted financial advisors and emphasized that default was a risk. The developer warned of immense pressure on its cash flow and liquidity.
Evergrande has nearly 800 projects in progress and spread across over 200 cities in each province of mainland China. Its deepening financial troubles have worried investors, suppliers, employees, and home buyers.
EGRNF up +25.08%.