Chinese property giant Evergrande Group has been summoned for disciplinary “regulatory discussions” by Chinese authorities concerned about the volume of risky debt amassed by leading concerns in the real estate sector.
Evergrande Group executives met with officials from the Chinese central bank and the China Banking and Insurance Regulatory Commission (CBIRC) for discussions on 19 August, according to an announcement made by Evergrande the following day.
The central banks and CBIRC said that leading enterprises in the real estate sector needed to “earnestly implement the strategic arrangements of the central government in relation to the stable and healthy development of the real estate market,” as well as “strive to maintain the stability of operations and actively resolve debt risk.”
Evergrande said that it would “comprehensively implement the demands of the discussions,” and “maintain the stable operations of the company, dispose of debt risk and maintain the stability of the real estate market and finance with maximum determination and vigour.”
“[We will] firmly, unwaveringly and thoroughly implement the strategic arrangements of the central government with regard to the stable and healthy growth of the real estate market, and pragmatically implement the enterprise’s independent responsibilities,” said Evergrande.
“[We will] consider all methods to ensure the development of projects, complete real estate payments and guarantee volume and quality; firmly, lawfully and properly perform major information disclosures, and will absolutely refrain from disseminating any untrue information, as well as make prompt clarifications.”