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