China asks local governments to prep for Evergrande downfall

https://bbs.bizedu.net/viewtopic.php?f=4&t=1230

The journal is quoting sources saying that local officials have been ordered to prepare for a possible storm. So, that means reaching out to private as well as state developers to try to find a way to take over a certain real estate assets if necessary, also to study ways to offset the impact on home buyers and jobs, look at the broader impact on the economy, setting up teams to prevent unrest, and only stepping in at the very last minute if Evergrande isn't able to sought out its own issues.

So this report is really backing the general impression that Beijing does not want to step in with direct support but would rather find another solution most preferably for the company to work out its own issues.

And we heard late yesterday the founder of Evergrande had convened a meeting of four thousand of its managers to try to, encourage them to go all-in, he said, to try to guarantee homes, and to prioritize wealth investors in their discussions and their efforts to try to survive.

Now here where I am right now at an unfinished Evergrande project in Beijing, home owners are still very uncertain about what all this means, especially because the debt is so large, the communication has been a little bit iffy. Staff here have been saying, what the founder has been saying which is that those homes are going to be delivered but there's still a whole lot of question marks in their minds of the home owners who've been coming here all day, worried about the debt. And of course, as you know, a part of that debt is the interest payment on a dollar-denominated bond which is supposed to be coming today, and we still have no word about that.