China’s central bank says Evergrande is unique and most real estate developers are stable

Real Estate

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018.
Bobby Yip | Reuters

BEIJING — The People’s Bank of China said Friday that indebted developer China Evergrande is its own case, and that most real estate businesses in the country are stable.

Property giant Evergrande has $300 billion in liabilities and missed yet another payment to investors in U.S. dollar-denominated debt on Oct. 11. The developer ranks second in China by sales, prompting some concerns of another “Lehman Moment.”

The risks posed by Evergrande are “controllable,” Zou Lan, director of the People’s Bank of China’s financial markets department, said in Mandarin at a press conference Friday, according to a CNBC translation.

“China Evergrande Group’s problems in the real estate industry are an individual phenomenon,” he said, noting that property prices have remained stable. “Most real estate businesses are operating stably and have good financial indicators, and the real estate industry overall is healthy.”

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