Business Standard

China considers Evergrande split to contain crisis in realty sector

The restructuring plan calls for the developer to sell most of its assets

Evergrande Group

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Chinese authorities are considering a proposal to dismantle China Evergrande Group by selling the bulk of its assets, according to people familiar with the matter.

The restructuring proposal, submitted to Beijing by officials in Evergrande’s home province of Guangdong, calls for the developer to sell most assets except for its separately listed property management and electric vehicle units, the people said, asking not to be identified discussing a private matter. A group led by China Cinda Asset Management, a state-owned bad debt manager and major Evergrande creditor, would take over any unsold property assets, the people said.

If approved by senior officials

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First Published: Jan 27 2022 | 11:37 PM IST

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