Since news broke on December 3 of Guangdong province’s de facto takeover of ailing property giant China Evergrande, provinces like Jiangsu and Zhejiang on the east coast are rushing to seize the company’s local assets.
The scrum underscores how much is at stake for local governments as China Evergrande teeters on the brink of bankruptcy with more than $300 billion of debt after Fitch Ratings declared it in default on December 9 for failing to make bond coupon payments of $82.5 million.
China Evergrande’s interim report noted that China Zheshang Bank in Zhejiang, Huishang Bank in Anhui, Bank of Luoyang in Henan were among its principal settlement and transaction banks.
