China's real estate giant Evergrande Group, which is suffering from huge debt and is in financial difficulty, has announced a policy to discuss debt restructuring with foreign creditors.
The local government in Guangdong, where the head office is located, has announced that it will send a working team, and it seems that it wants to curb the spread of the impact.
On the 3rd, Chinese real estate giant Evergrande Group announced that it is required to fulfill its debt guarantee of about 29 billion yen in Japanese yen.
He also stated that he would discuss debt restructuring with foreign creditors, saying that he may not be able to meet his financial obligations over the huge debt that the company has.
It seems that they intend to request a review of repayment conditions, indicating that cash flow is still in a difficult state.
After the announcement, the local government of Guangdong Province, where the Evergrande Group's head office is located, heard from Chairman Xu Jiayin and announced that he would send a working team to "control risks and stabilize society."
In addition, financial authorities such as the Central Bank of China and the People's Bank of China also announced one after another that "the risk of the Evergrande Group is due to lack of control and blind business expansion", and the impact on the financial market as a whole will be affected. I emphasized that it is limited.
With concerns about the management of the Evergrande Group and other real estate companies with large debts continuing, the authorities are looking to curb the spread of the impact.