China Appoints State Companies To Acquire Evergrande’s Property

Some government-owned companies and real estate developers are backed by the State that have been asked to be intermediaries in restructuring and selling assets of Evergrande. Monday China Evergrande is standing on the verge of collapse with a debt of 305 billion USD. According to Reuters, China's second largest real estate corporation Evergrande is standing on the verge of collapse with a debt of 305 billion USD. Meanwhile, the central government is very difficult to directly intervene to resolve the crisis of Evergrande in the form of a relief package. But these authorities expect that the acquisition of Evergrande's property will stop Being a default or at least possible to minimize social instability occurs if Evergrande collapses

. Some businesses owned by the Government have conducted evaluation of some assets of Evergrande in Guangzhou city. Including the Investment Group of Guangzhou City Construction Investment. This group is about to buy Evergrande's Guangzhou football stadium and residential projects around this stadium
Guangzhou Football Stadium has a construction cost of about 12 billion yuan (equivalent to 1.9 billion USD). This stadium is designed with a capacity of more than 100,000 people, believed to be the world's largest football field in accordance with accumulation. Holding 1/3 of the shares - is also required to buy assets from Evergrande. Vanke said, in August, they negotiated with Evergrande on cooperation in many projects. Some other businesses such as Jinmao, China Resources Land, China Jinmao Holdings are also designated to acquire Evergrande's property. The designated companies acquired Evergrande's core assets are considered and considered both politics and trade. In the last week, Evergrande still has not paid $ 83.5 million in bond interest rates for Overseas owners and payments for 47.5 million USD coupons are due
China appoints state-owned state companies to acquire the assets of Evergrande. Evergrande is facing the risk of default (default It is considered to be China's largest ever) but government agencies are almost still silent about the possibility of rescuing Evergrande with a relief package or collapse measures. But the Beijing government has been trying to limit any impact of the Evergrande debt crisis for the financial system. The central bank China recently announced to protect home buyers and also pump money into the banking system to increase liquidity.

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