China News Service, Beijing, October 20 (Reporter Xia Bin) The People's Bank of China announced on the 20th that its governor Yi Gang said in answering questions at the 2021 G30 International Banking Seminar that the recent situation in Evergrande has triggered more Concerned that, overall, Evergrande’s risk is a case-by-case risk. Its liabilities are about US$300 billion, of which one-third are financial liabilities. Creditors are scattered, and there are collaterals. In general, the Evergrande incident may have a spillover effect on the financial industry. control.
Regarding the measures to respond to the Evergrande incident, Yi Gang said, one is to prevent Evergrande’s risks from spreading to other real estate companies.
The second is to avoid risk transmission to the financial sector.
Regarding the principle of response to the Evergrande incident, Yi Gang pointed out that the lawful rights and interests of creditors and property owners should be fully respected and protected in strict accordance with the order of payment prescribed by law.
In this process, it is especially necessary to protect the legitimate rights and interests of consumers who have purchased houses.
"We will adhere to the principle of rule of law to ensure that the legitimate rights and interests of all creditors and stakeholders are treated fairly. Generally speaking, we are confident that we can control risks within a certain range and avoid systemic risks," said Yi Gang.
He also said that since the beginning of this year, the central bank has actively prevented and resolved financial risks, including maintaining the basic stability of the macro leverage ratio, disposing of a few financial institutions such as Baoshang Bank in accordance with the law, and supporting banks, especially small and medium-sized banks, to replenish capital through multiple channels.
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