Billionaire Hui Ka Yan Gets Help From Guangdong Government Amid Evergrande Debt Crisis

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Hui Ka Yan, chairman of embattled property developer Evergrande, was summoned by Guangdong’s provincial government late on Friday after the deeply indebted company warned the same day that it might not be able to meet its financial obligations.

Hong Kong-listed evergrande, now nearing a collapse of more than $300 billion in total liabilities, sought help from the southern province, according to a brief post published through its website. Officials in Guangdong, where Evergrande is located, agreed to send a “working group” to help the company “resolve risks, strengthen internal controls and maintain its normal operations”.

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The post said the Guangdong government also “pays close attention” to Evergrande’s latest warning. one in stock exchange filing On December 3, the company said it had received a demand to pay creditors in the amount of $260 million.

“In light of the Group’s current liquidity position, there is no guarantee that the Group will have sufficient funds to meet its financial obligations,” Evergrande said in the filing.

“In the event that the Group is unable to meet its guarantee obligations or certain other financial obligations, it may seek expedited repayment to creditors,” the company said.

Meanwhile, Chinese officials are busy issuing statements of intent to reassure investors. The China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as regulators of the country’s central bank, the People’s Bank of China, recently published separate statements concerning Evergrande.

For example, the central bank said in a online statement That it will work with the Guangdong government and relevant government departments to help address risks and promote the “stable and healthy” development of the country’s property market.

“Evergrande’s crisis is primarily the result of its own mismanagement and blind expansion,” the PBOC said in the statement. “The risks of individual companies will not impact general market fundraising in the mid to long term.”

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