The relevant person in charge of the China Securities Regulatory Commission answered reporters' questions on the risk incident of Evergrande Group
Question: On December 3, China Evergrande Group disclosed an announcement that it may not be able to perform its guarantee obligations. What impact will Evergrande Group risk events have on the operation of the capital market?
Answer: Evergrande Group's poor management and blindly diversified expansion eventually led to a risk outbreak, which is a case risk.
At present, the overall real estate industry in my country maintains a healthy development, and most real estate companies stick to their main business and operate steadily.
At present, the A-share market is generally stable, with strong resilience and high activity. The default rate of the exchange bond market remains at a low level of about 1%. The financial indicators of listed companies and bond issuers are generally healthy. Evergrande The spillover impact of group risk events on the stable operation of the capital market is controllable.
In the next step, the China Securities Regulatory Commission will continue to maintain the effective use of market financing functions, support the reasonable and normal financing of real estate enterprises, and promote the steady and healthy development of the capital market and the real estate market.