China’s central bank says Evergrande is unique and most real estate developers are stable

Finance

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018.
Bobby Yip | Reuters

BEIJING — The People’s Bank of China said Friday that indebted developer China Evergrande is its own case, and that most real estate businesses in the country are stable.

Property giant Evergrande has $300 billion in liabilities and missed yet another payment to investors in U.S. dollar-denominated debt on Oct. 11. The developer ranks second in China by sales, prompting some concerns of another “Lehman Moment.”

The risks posed by Evergrande are “controllable,” Zou Lan, director of the People’s Bank of China’s financial markets department, said in Mandarin at a press conference Friday, according to a CNBC translation.

“China Evergrande Group’s problems in the real estate industry are an individual phenomenon,” he said, noting that property prices have remained stable. “Most real estate businesses are operating stably and have good financial indicators, and the real estate industry overall is healthy.”

This is a breaking news story. Please check back for updates.

Articles You May Like

Nvidia’s $6 trillion milestone looms. Here’s when options traders see it happening
Berkshire buys more Lennar shares, but pace of purchases slows
Up to 25 million Trump Accounts could be funded by mid-October, IRS CEO Frank Bisignano says
Traders now see little chance of a Fed rate hike in October after weak jobs report
Europe’s winter energy crunch may already be underway. Two U.S. stocks that may benefit

Leave a Reply

Your email address will not be published. Required fields are marked *