[Hong Kong, 17th Reuters]— Chinese state media “Global Times” editor-in-chief Hu Xijin said on the 16th that China’s Evergrande Group, a real estate development giant with huge debt, is not a “company that is too big to crush” He pointed out that he should try to rebuild by himself by utilizing the means of the market without relying on the relief of.
This is the first time the state media has questioned the government’s bailout.
In a post on social media (SNS) WeChat, Hu said he doesn’t think the bankruptcy of Evergrande Group would cause havoc to shake financial systems like Lehman Brothers. , Pointed out that the company is a real estate development company and the ratio of real estate deposits is very high in China.
He acknowledged that the market should be sought for relief, not the government.
Global Times is a tabloid of the Chinese Communist Party newspaper “People’s Daily,” but its views do not necessarily reflect the official views of the Chinese authorities.
Authorities are urging Evergrande’s major credit banks to postpone interest payments and extend repayment deadlines, and there is widespread view in the market that the government is unlikely to bail out the company directly.
A group of foreign corporate bond holders at Evergrande Group of China have invested in debt restructuring, centered on about $ 20 billion in dollar-denominated bonds in the event of an unpaid amount, a source told Reuters. Maurice, a bank, and Kirkland & Ellis, a law firm, were selected as advisors.
Evergrande will need to pay interest on March 2022 redemption bonds ($ 83.5 million) on the 23rd and interest on March 2012 redemption bonds ($ 47.5 million) on the 29th. Failure to pay interest within 30 days will result in default (default).
Evergrande shares in China fell 13% on the 17th, the lowest since October 2011. Offshore bonds redeemed in October 2011 fell 10% to 16.125 cents.
The stock price of China Minsheng Bank, one of the major credit banks, fell 4.6%, hitting a low since its listing.
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