One bank is said to be making provisions for non-payment of loan while others prepare to roll over some of their near-term debt obligations
Shares of Sunac, China's fourth-largest property developer, dropped more than 10%, while state-backed Greentown China shed almost 7%.
In comments posted on his WeChat account, Hu Xijin said the state will not "spare the rat to save the dishes’, or accommodate and protect an enterprise, just because its problems are serious"
The plight of unpaid contractors has thrown a spotlight on the extensive use of commercial paper in China's property sector. Developers favour it as they prefer to not pay upfront and it doesn't count as interest-bearing debt.
China Minseng is one of 128 banks and 121 other institutions who loaned funds to Evergrande up till last year, so any collapse or sell-off of the company's assets could be felt far and wide
Hengda Real Estate Group, the main arm of Evergrande, sought to suspend trading of its onshore corporate bonds as it battles its liquidity crisis; later, guards took away some protesters demanding the return of their investments at the company's head office
Housing officials warned banks that Evergrande won't be able to pay loan interest due next week, Bloomberg reported. It said Evergrande was discussing extending payments and rolling over loans.
The property firm’s liabilities involve more than 128 banks and more than 121 non-banking institutions – if they go under, the impact could be felt far and wide
Evergrande says it has appointed two companies as joint financial advisers, in the clearest indication yet it is looking at restructuring options amid the scramble to repay its enormous debts; regulators are also said to be preparing a team to assess the group's debts
Shares of the office developer saw their biggest daily fall since 2007 with speculation rife that the US equity firm scrapped the deal over fears China’s regulator would reject the move