China's central bank talks about Evergrande's risk: it will not affect the normal financing function of the medium and long-term market
China News Service, Beijing, December 3 (Reporter Xia Bin) China Evergrande Group issued an announcement on the Hong Kong Stock Exchange on the 3rd that it could not perform its guarantee obligations. The relevant person in charge of the People's Bank of China stated that the main source of risks in Evergrande Group Because of its own poor management and blind expansion.
The overseas US dollar bond market is highly market-oriented, with relatively mature investors and strong screening capabilities, and there are clear legal regulations and procedures for handling related issues.
The short-term risks of individual real estate companies will not affect the normal financing function of the medium and long-term market.
The above-mentioned person in charge said that recently, domestic real estate sales, land purchases, financing and other activities have gradually returned to normal. Some Chinese real estate companies have begun to repurchase overseas bonds, and some investors have also begun to buy US dollar bonds of Chinese real estate companies.
The person in charge emphasized that China has always insisted on creating a fair market environment and steadily and orderly promoting the two-way opening of China's financial market.
Relevant departments will continue to maintain communication with relevant regulatory authorities in overseas markets, and urge overseas bond-issuing companies and their shareholders to strictly abide by market discipline and rules, and to properly handle their own debt issues in accordance with the principles of marketization and rule of law, and actively perform statutory repayments. Debt obligations.
"For the repayment of funds remitted by enterprises and the repurchase of overseas bonds, the relevant departments will provide support and convenience under the current policy framework." The person in charge said.
(over)