Evergrande promises to fix debt after bosses summoned by regulators

Evergrande, China's biggest home builder, and now the most indebted company in the country, said it will “do everything to ensure the quality of its construction and deliver properties on time."

Photo from CFP

Photo from CFP

By XU Lingchao

 

The executives of heavily indebted Chinese property developer Evergrande were summoned by banking and insurance regulators, along with the central bank on August 19. The company was warned to reduce debt risks and prioritize stability.

Evergrande, China's biggest home builder, and now the most indebted company in the country, said on Friday morning in a statement that it will “do everything to ensure the quality of its construction and deliver properties on time."

Evergrande has more than 240 billion yuan (US$37 billion) of bills and trade payables from contractors to settle over the next 12 months.

The company has been busy cashing out over the past few months. According to Reuters, smartphone maker Xiaomi is taking over 65 percent stake in evergrande's listed EV unit. Both Xiaomi and Evergrande denied the rumor, stating after initial talks, no progress had been made.

On Tuesday, Evergrande announced that its chairman XU Jiayin is stepping down as chairman of Hengda Real Estate Group. Zhao Changlong, previously a director, will replace Xu and also act as general manager.