HONG KONG (Reuters) – The rights of shareholders and creditors of cash-strapped property developer China Evergrande Group will be “fully respected” based on their legal seniorities, central bank governor Yi Gang said on Thursday.
The risk caused by a few Chinese real estate companies in the short term will not undermine Hong Kong’s capital market, he told a financial forum in the Asian financial hub.
Evergrande’s missed deadline this week on debt payment has put it at risk of becoming China’s biggest defaulter, with $300 billion in liabilities, even as hopes for a managed debt restructuring calmed fears of a messy collapse.
(Reporting by Alun John; Editing by Sumeet Chatterjee and Clarence Fernandez)
