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China Slowly Dismantling Evergrande: WSJ

The plan is to manage a controlled implosion by selling off some assets to Chinese companies


Evergrande
Evergrande shares hit a record low on Wednesday. The group has yet to say whether it has paid a $82.5m debt that was due on Monday. Photo: Reuters.

 

Beijing is dismantling China Evergrande Group, slowly and behind the scenes, in what amounts to one of the biggest financial challenges Beijing has faced in years, The Wall Street Journal reported.

The plan, according to people familiar with the matter and official government statements, is to manage a controlled implosion by selling off some Evergrande assets to Chinese companies while limiting damage to home buyers and businesses involved in its projects.

Chinese authorities must do this without bringing down the country’s epic property boom. Evergrande is struggling to manage roughly $300 billion in liabilities, including close to $20 billion in outstanding US dollar bonds.

Read the full report: The Wall Street Journal

 

 

READ MORE:

China Evergrande Resumes Work On More Than 10 Projects

China Evergrande Averts Default With $83m Bond Payment

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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