Officials in China familiar with discussions about the beleaguered property giant Evergrande say Beijing is reluctant to bail out the debt-laden developer but is preparing for economic and social fallout from the company’s downfall, according to a report in the Wall Street Journal.
They wrote: “The officials characterised the actions being ordered as ‘getting ready for the possible storm,’ saying that local-level government agencies and state-owned enterprises have been instructed to step in to handle the aftermath only at the last minute should Evergrande fail to manage its affairs in an orderly manner,” with local governments told to prevent unrest and mitigate the ripple effect on homebuyers and the economy. Full story: Wall Street Journal.
ALSO SEE:
Evergrande Seeks To Reassure Investors As Second Debt Deadline Looms
