The central bank： Hengda Group’s risk is mainly due to its own poor management and blind expansion

　　CCTV News:According to the website of the People’s Bank of China, on November 3, the relevant person in charge of the People’s Bank of China answered a reporter’s question on Evergrande.

　　1. Just now, Evergrande disclosed the announcement that it may not be able to fulfill its guarantee obligations. What is your comment on this?

　　Answer: Evergrande Group’s risks are mainly due to its own poor management and blind expansion. The overseas US dollar bond market is highly market-oriented, and investors are relatively mature and have strong screening capabilities. There are also clear legal regulations and procedures for handling related issues. Short-term risks for individual real estate enterprises will not affect the normal financing function of the medium and long-term market. Recently, domestic real estate sales, land purchases, financing and other behaviors have gradually returned to normal. Some Chinese real estate enterprises have begun to buy back overseas bonds, and some investors have also begun to buy US dollar bonds of Chinese real estate enterprises.

　　China has always insisted on creating a fair market environment and advancing the two-way opening up of China’s financial marekt in a steady and orderly manner. Relevant departments will continue to maintain communication with relevant regulatory authorities in overseas markets and urge overseas bond issuers and their shareholders to strictly abide by market disciplines and rules, properly handle their own debt issues in accordance with the principles of marketization and the rule of law, and actively fulfill their statutory debt repayment obligations. For enterprises that remit funds to repay and buy back overseas bonds, relevant departments will provide support and convenience under the current policy framework.

　　2. The Guangdong Provincial People’s Government agreed to send a working group to Hengda Real Estate Group. What is your comment on this?

　　Answer:At the request of Hengda Real Estate Group Co., Ltd., the Guangdong Provincial People’s Government has agreed to send a working group to Hengda Real Estate Group Co., Ltd. This is a powerful measure to promote enterprise risk disposal, supervise and effectively strengthen internal control management, and maintain normal operations. The People’s Bank of China supports this. We will continue to cooperate with the Guangdong Provincial Government, relevant departments and local governments to do a good job in risk mitigation, maintain the stable and healthy development of the real estate market, and safeguard the legitimate rights and interests of housing consumers.