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China Evergrande Says Banks Seized $2.1bn: Tweet of the Day

China expert Michael Pettis says how the matter is handled ‘could have an adverse impact on the way insolvency occurs within China’


The China Evergrande Centre building sign is seen in Hong Kong
Saddled with more than $300 billion in liabilities, the Evergrande Group is undergoing a debt restructuring after it defaulted late last year. Photo: Reuters.

 

Troubled property developer China Evergrande said on Tuesday that it ”found” 13.4 billion yuan ($2.1 billion) in pledged deposits had been seized by banks.

How the matter is handled by China’s government ”could have an adverse impact on the way insolvency occurs within China,” says Michael Pettis, an expert in China’s financial markets who is a professor of finance at Peking University in Beijing. Here are his tweets on the discovery:

 

Also on AF:

Evergrande Units Say ‘Drastic Changes’ Will Delay 2021 Results
China Evergrande Seen Resolving $511m Loan With State Help
AF TV – Evergrande Debt Crisis: Five More Developers on the Brink of Default

 

Kevin Hamlin

Kevin Hamlin is a financial journalist with more than 40 years of experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.

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