China Evergrande sets up a risk mitigation committee, with Xu Jiayin as chairman


2021-12-06: [Article Link]  On 6 December, China announced in Hong Kong that, taking into account the operational and financial challenges currently facing the group, the company’s board of directors had decided to set up a risk-mitigation committee for China’s Hengjiang Group. The announcement indicated that the committee was chaired by China’s Chief Shige Ji Jiu, and the co-chair was chaired by Liu Chihong, Deputy Director-General of the Xianghai Holdings Group. In addition, the committee included five members, namely, Ban Dae-young, Chief Financial Officer of the Gang, Zhao Li-min, Vice-President of the Xindus Corporation of China, Li Feng, Chief Capital Operator of the Guangzhou Viet-Soo Group, Chen Yong, Director General of State Trust Securities Compliance, and his partner in Beijing’s mid-Lun law firm. After an urgent interview with the Guangdong People’s Government and a working group sent at the company’s request. The government failed to stabilize market confidence, opening the Hong Kong (Monday) share on 6 December, China fell by more than 11%, receiving the Hong Kong dollar/stock, falling to an 11-year low, reaching 19.56%, with the largest decline in the number of priority housing firms. The head of the People’s Bank said that the risks posed by large groups had recently returned to normality, with some middle-income firms buying back offshore bonds and some investors buying back Chinese-owned dollar bonds. The Bank’s news spokesperson said that the Bank’s Superintendency was concerned that the Bank’s failure to meet its guarantee obligations on an offshore bond was a case-by-case matter in the market economy. The Bank’s Supervisory Board believed that foreign and domestic regulators would deal with the matter fairly and fairly in accordance with the law. At present, the stock market is generally stable, more resilient and more active, the exchange bond market is at a low rate of default of around 1%, housing listed companies and bond issuers are at an overall level of health, and the spillover effects of large group risk events on the stable functioning of the capital market are manageable.


Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.



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China Evergrande sets up a risk mitigation committee, with Xu Jiayin as chairman


2021-12-06: [Article Link]  On 6 December, China announced in Hong Kong that, taking into account the operational and financial challenges currently facing the group, the company’s board of directors had decided to set up a risk-mitigation committee for China’s Hengjiang Group. The announcement indicated that the committee was chaired by China’s Chief Shige Ji Jiu, and the co-chair was chaired by Liu Chihong, Deputy Director-General of the Xianghai Holdings Group. In addition, the committee included five members, namely, Ban Dae-young, Chief Financial Officer of the Gang, Zhao Li-min, Vice-President of the Xindus Corporation of China, Li Feng, Chief Capital Operator of the Guangzhou Viet-Soo Group, Chen Yong, Director General of State Trust Securities Compliance, and his partner in Beijing’s mid-Lun law firm. After an urgent interview with the Guangdong People’s Government and a working group sent at the company’s request. The government failed to stabilize market confidence, opening the Hong Kong (Monday) share on 6 December, China fell by more than 11%, receiving the Hong Kong dollar/stock, falling to an 11-year low, reaching 19.56%, with the largest decline in the number of priority housing firms. The head of the People’s Bank said that the risks posed by large groups had recently returned to normality, with some middle-income firms buying back offshore bonds and some investors buying back Chinese-owned dollar bonds. The Bank’s news spokesperson said that the Bank’s Superintendency was concerned that the Bank’s failure to meet its guarantee obligations on an offshore bond was a case-by-case matter in the market economy. The Bank’s Supervisory Board believed that foreign and domestic regulators would deal with the matter fairly and fairly in accordance with the law. At present, the stock market is generally stable, more resilient and more active, the exchange bond market is at a low rate of default of around 1%, housing listed companies and bond issuers are at an overall level of health, and the spillover effects of large group risk events on the stable functioning of the capital market are manageable.

Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.

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