Sunday. 04.12.2022
ASIA

China's real estate giant Evergrande warns it could run out of money

Evergrande is considered the most indebted real estate company in the world
FILED - A scene from a Beijing construction project. The head of Chinese real estate group Evergrande, which is threatened with collapse, told employees in a letter that he is convinced the "darkest moment" can be overcome. Photo: picture alliance / dpa
A scene from a Beijing construction project. Photo: picture alliance/dpa/File photo.

Heavily indebted Chinese property group Evergrande has warned it may run out of money.

Following a review of its financial resources, the company said on Friday evening that it could not guarantee it will have sufficient funds to meet its financial obligations.

The government of the Chinese province of Guangdong, where Evergrande is headquartered, on Friday announced that it would send a working group to the company with the aim of reducing risks and protecting the interests of all parties involved.

Evergrande chief executive Xu Jiayin was asked to speak to the local authorities.

China's stock exchange regulator tried to allay fears of a growing crisis. The effects of the events at Evergrande are manageable, a statement from the authority said.

Huge debt

Evergrande is considered the most indebted real estate company in the world, with debts amounting to around 300 billion dollars.

It urgently needs to raise money to pay banks, suppliers and bondholders on time.

The group is so big that some experts fear a contagion risk for China's economy and beyond.

More bond interest payments are due in the coming weeks and months.

China's real estate giant Evergrande warns it could run out of money
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