PBoC says risks to financial system from China Evergrande Group are 'controllable'
By Alexander Bueso
Date: Friday 15 Oct 2021
(Sharecast News) - People's Bank of China looked to assuage concerns in financial markets around stricken real estate giant China Evergrande Group.
At a press briefing on Friday, PBoC offcial, Zou Lan, said the developer's problems were "controllable", Bloomberg reported.
Authorities and local governments were working to resolve its situation using "market-oriented and rule-of-law principles" and lenders had been asked to maintain "stable and orderly" credit to real estate sector , Zou reportedly added.
Overnight, Reuters reported that state-owned Yuexiu Property had pulled out of a proposed $1.7bn deal to purchase China Evergrande Group's Hong Kong headquarters.
Sources told Reuters that Yuexiu had been close to sealing a deal in August, but its board had opposed the move due to worries that Evergrande's debt problems might complicate a successful close of the transaction.
China Evergrande acquired the harbourside property from Chinese Estate Holdings back in 2015 for approximately $1.61bn.
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