October 20, 2021
Real Estate

China vows to protect real estate market amid Evergrande woes

China’s central bank pledged Monday to protect “sound development” of the country’s real estate market, as major property developer China Evergrande Group has been facing default risk.

The remarks by the People’s Bank of China have sparked speculation that the leadership of President Xi Jinping may implement measures to prop up the nation’s real estate and financial markets, some dealers said.

Workers proceed with construction of building by major property developer China Evergrande Group in Zhuhai, China, on Sept. 27, 2021. (Kyodo)

Financial market participants have become worried that a possible bankruptcy of Evergrande, whose liabilities have swelled to around 2 trillion yuan ($309 billion), could cause another global financial crisis like the one of 2008.

The main unit of Evergrande promised to make a coupon payment on bonds due last Thursday, somewhat…

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