Slowdown. A resident cycles through an Evergrande community in Wuhan.Credit:Getty Images
Evergrande is struggling with more than $US300 billion in liabilities as a government campaign to deleverage developers and curb years of housing speculation takes a toll. Already labelled a defaulter after missing coupon payments on two bonds,Evergrande is facing a maturity wall next year and has said it plans to “actively engage” with offshore creditors on a debt restructuring plan.
Concerned that a deepening industry crisis would hurt economic growth and undermine social stability,Beijing has started to ease financing for some developers as well as homebuyers. Evergrande’s overhaul is now being guided by a risk committee that includes officials from its home province of Guangdong.
In a quarterly monetary policy statement released Saturday,China’s central bank pledged greater support for the economy while reiterating its aim to promote the property sector’s “healthy” growth,protect homebuyers’ rights,and better meet housing demand.
Loading
Wang Menghui,minister of housing and urban-rural development,said in a weekend interview with state TV that the government will make efforts to stabilise land and housing prices and ensure reasonable demand. Still,he also emphasised that housing policy won’t be used as short-term economic stimulus.
Evergrande must “sprint at full speed” to meet the goal of delivering 39,000 apartment units this month,Hui said in the statement posted online,which carries a picture of him dressed in a gold tie and black suit addressing colleagues. The target is almost four times the firm’s average monthly delivery of under 10,000 units since September,according to the statement.