The renewed concerns around the Evergrande Group of China They are weakening investor confidence once again, especially after Chinese regulators asked billionaire Hui Ka Yan to use his personal wealth to ease the property giant’s growing debt crisis, Bloomberg reports.
Key details
The Beijing directive to Evergrande’s founder came after his company missed the initial September 23 deadline for paying a dollar bond coupon.
Local governments across China are monitoring Evergrande’s bank accounts to make sure the company’s cash is used to complete unfinished housing projects and is not diverted to pay creditors.
Market implications
Asian stocks are in the red as investors are unsure whether Hui’s wealth is liquid enough to reduce Evergrande’s sizable liabilities, which rose to more than $ 300 billion in June.
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