China tells states to be ready for Evergrande's possible collapse

Authorities ask embattled developer to avoid near-term default on bonds

Chinese authorities are asking local governments to prepare for the potential downfall of debt-ridden China Evergrande Group, the Wall Street Journal reported on Thursday, citing officials familiar with the discussions.

The move has been characterised as “getting ready for the possible storm” by the officials, according to the report. The officials said local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion, the WSJ reported.

Local governments have been tasked with preventing unrest and mitigating the ripple effect on home buyers and the broader