The second largest Chinese real estate developer is to be supported and restructured by the Guangdong provincial government, according to media reports. Evergrande announced at the weekend that a representative of the state-owned asset manager China Cinda Asset Management should move into the board of directors.
264 billion euros in debt
Investors saw this as a sign that the government was trying to stabilize Evergrande. Shares rose by around 12 percent yesterday on the Hong Kong stock exchange.
The homebuilder has more than $300 billion in debt and has defaulted on foreign bond interest in recent months. The homebuilder owes around $20 billion to foreign investors.
Source: Nachrichten
