Chinese financial regulators summoned senior executives of troubled real-estate developer China Evergrande Group to a meeting on Thursday, and said the company needs to resolve its debt issues without destabilizing the property and financial markets.
Representatives of the People’s Bank of China and the China Banking and Insurance Regulatory Commission attended the meeting with Evergrande, which is the country’s largest developer by contracted sales and its largest junk-bond issuer.
The regulators said in a brief statement that Evergrande’s industry-leading position means the company needs to ensure the real-estate market remains stable and healthy, and that it shouldn’t harm China’s broader financial stability.
They said Evergrande needs to defuse its debt risks, and told the company to be truthful in its disclosures and not disseminate false information. Evergrande didn’t immediately respond to a request for comment.
Evergrande, which is controlled by billionaire businessman Hui Ka Yan, is at the epicenter of a confidence crisis among investors that hold its bonds and the debt securities of other heavily indebted Chinese real-estate companies.
