The most obvious priorities, right now, are to calm the spirits of those who have paid or are paying for homes not yet built, to keep workers left without pay and retail investors at a loss.
If the central government aims to maintain social control, it is important from the point of view of social stability that Chinese retail investors get their money back and that buyers get their homes.
There is no indication of the future
A spokesperson for the company did not respond to a request for comment on the offshore deadline. The picture remains critical.
Evergrande has been losing steam since Chinese reforms introduced to calm real estate speculation, Fitch Ratings on September 16 reduced its 2021 economic growth forecast for China to 8.1% from 8.4%, due to the slowdown. of the real estate sector on domestic demand.
Weeks will pass before we have any clarity on how the situation will be resolved. The company could restructure its debts but continue to operate, or it could liquidate either way, but the company’s investors would likely suffer losses. The hypothesis of Evergrande’s unpacking into four smaller companies is also looming.