Beijing is pushing government-owned firms and state-backed property developers to acquire some of China Evergrande Group’s assets, people with knowledge of the matter told Reuters. Evergrande, saddled with $305 billion in liabilities, is teetering on the brink of collapse. But the central government is unlikely to intervene directly to resolve Evergrande’s crisis in the form of a bailout, according to six people, including four in government and regulatory bodies.
A handful of government-owned enterprises have already done due diligence on assets in the southern Chinese city Guangzhou, one person told Reuters. Guangzhou City Construction Investment Group is close to acquiring Evergrande’s Guangzhou FC Soccer stadium and surrounding residential projects, according to the person.
In its first major asset sale during the current liquidity crisis, China Evergrande Group has signed an agreement to sell 19.93% of Shengjing Bank for just under RMB 10 billion ($1.55 billion) to Shenyang Shengjing Finance Investment Group, according to a Hong Kong exchange filing on Wednesday, reports the South China Morning Post.