Beijing, Dec 9, (dpa/GNA) – The governor of China’s central bank, Yi Gang, signaled on Thursday that Beijing was unwilling to bail out heavily indebted Chinese real estate giant Evergrande.
Yi described Evergrande’s risks as a “market event” that would be dealt with appropriately and “according to the principles of the market and the rule of law.”
Hong Kong, where Evergrande is listed, was a mature financial center and had an efficient system and clear rules and procedures to deal with the issues in question, the central bank chief stressed.
Evergrande is currently more than 300 billion dollars in debt, and even warned of possible default last week. Following a review of its financial resources, the company said no guarantee could be given that the group would have sufficient funds to meet its financial obligations.
GNA