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ING expects Chinese govt team to help Evergrande get some capital

ING expects Chinese govt team to help Evergrande get some capital

Vehicles drive near unfinished residential buildings from the Evergrande Oasis, a housing complex developed by Evergrande Group, in Luoyang, China September 16, 2021. Picture taken September 16, 2021. REUTERS/Carlos Garcia Rawlins

The Chinese government's restructuring team will help property developer Evergrande at least get some capital, but it may have to sell some stakes to a third party, such as a state-owned enterprise, Dutch bank ING said on Tuesday.

"The spin-off of non-core businesses, for example, those that are not residential real estate type businesses, will probably be done first. After that could come sales of stakes that are at the core of Evergrande's business," Iris Pang, ING's Chief Economist, Greater China, said in a note https://bit.ly/3tXli4P.

"So the stake could be sizeable. We don't, however, think it is inevitable that Evergrande will be bought out by an SOE and become an SOE itself."

(Reporting by Kanishka Singh in Bengaluru; Editing by Muralikumar Anantharaman)

Source: Reuters

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