China’s financial regulators have ordered developer Evergrande to sort out its debt issues.
In a rare public admonishment, the People’s Bank of China and the China Banking and Insurance Regulatory Commission said in a statement on Thursday that Evergrande must “actively diffuse debt risk and maintain real estate and financial market stability”, after meeting with its executives.
The developer is shouldering more than $100m of debt.
The company’s bonds that will mature in 2025 were trading down 3% at 37 cents on the dollar following the announcement, a distressed level and far below their position of more than 80 cents as recently as May.
