China’s second-largest real estate developer, Evergrande Group, a company that faces more than $300 billion in liabilities, said in a filing to the Hong Kong Stock Exchange on Friday that it was struggling to find funding for its recent payments. despite paying $260 million to its creditors. ,

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“In light of the current liquidity situation … there is no guarantee that the Group will have sufficient funds to meet its financial obligations,” the company said in its statement reported by Reuters.

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Reuters wrote That news triggered a series of meetings with government officials, starting with a Friday appointment in Evergrande’s home state, Guangdong province, where company president Hui Ka Yan met with officials. Following this meeting, the government agreed to send a “working group” that would “oversee risk management, strengthen internal controls and maintain normal operations,” Reuters reported.

From here, China’s central bank, the People’s Bank of China, got involved, assuring that any potential impact of Evergrande’s collapse on the market could be contained. However, it will not guarantee that this mitigation will be done through a bailout.

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“Evergrande’s problem was mainly due to its own mismanagement and break-neck expansion,” the People’s Bank of China said, adding that it would not allow the collapse of a single firm to undermine its markets, according to Reuters. wrote.

Analysts have made a variety of predictions about how the collapse of Evergrande could affect the global economy. Some have said it may have been China’s Lehman moment, spurring the bankruptcy of Lehman Brothers, the former US bank that helped kick off the 2008 financial crisis. Others have confirmed that the situation is under control given the enormous regulatory powers of the Chinese government, including the People’s Bank.

Scott Kennedy, Chair of Trustees in Chinese Business and Economics at the Center for Strategic and International Studies (CSIS), talks newsweek in October about whether the bank can be relied upon in relation to its pledge that the risk can be contained. He said that this trust rests on the ultimate intentions of the bank.

“If it is about re-establishing the role of the state in the economic system. If they give this message, it is completely credible,” he said. “If they’re trying to assure that there may be a narrow range of assets that state officials guarantee, and that market pricing will play a big role in managing risk and complications from investing.” , I guess it’s a tough sell.”