Real estate: Chinese giant Evergrande urged by Beijing to resolve debt problems

Chinese authorities on Thursday summoned officials from Evergrande to demand that they "

" resolve the conglomerate's cash flow problems, whose bankruptcy would have major repercussions on the Asian giant's economy.

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Evergrande, one of China's largest private groups, says it employs 200,000 people and generates 3.8 million jobs in China.

Real estate is its main activity and its founder Xu Jiayin the fifth fortune in the country, according to the Chinese specialist firm Hurun.

It is now heavily in debt after having increased acquisitions: 5.655 billion yuan (743 billion euros) in January 2021, date of publication of the accounts.

Repayment capacities

Worried about medium-term repayment capacities, the rating agency Moody's lowered the strength rating by two notches in early August, from “

” to “

”, one of the worst that can be attributed. Fitch and Standard and Poor's (S&P) had done the same. On Thursday, the Central Bank and the Chinese banking and insurance regulator (CBIRC) summoned officials from Evergrande. They were asked to "

" the issue of the group's indebtedness and "

," according to a statement released by the Central Bank.

Evergrande must "

", insisted the authorities, while the financial health of the group regularly raises concerns in the markets.

Recently, contractors and suppliers have complained that they are not being paid on time.

Besides real estate, Evergrande also owns a football club: Guangzhou FC (ex-Guangzhou Evergrande), based in Canton (south) and coached by Italian world champion Fabio Cannavaro.

Read also Moody's downgrades the rating of real estate giant Evergrande

The group is also present in the flourishing mineral water and food market, with its Evergrande Spring brand. He has also created amusement parks for children, wanted "

" than those of his rival Disney. And Evergrande has also invested in tourism, internet, digital, insurance, health and even electric cars. Evergrande announced last week "

" with investors to sell some of its assets.