The provincial government of the city of Shenzhen wants to examine a division of the ailing Chinese real estate company Evergrande. In a letter to investors that the Reuters news agency was able to inspect, the Shenzhen financial regulator said it had obtained public assessments of the Evergrande Wealth division in order to initiate a thorough investigation into the company's problems. The group is headquartered in the southern Chinese city. The agency also asked Evergrande and Evergrande Wealth to seek repayments to investors. The letter was sent after investors requested an investigation. Neither Evergrande nor the Shenzhen government commented on this.
Like other highly indebted conglomerates, Evergrande has sold high-yield investment products to investors, raising money for borrowing by circumventing government regulations.
The company has over $ 300 billion in debt and has defaulted on customers, banks and bondholders.
Evergrande let a deadline for bond interest pass on Friday.