Chinese authorities scrutinising assets of Evergrande Group, its chairman

Chinese authorities are scrutinising the assets of China Evergrande Group and its wealthy chairman Hui Ka Yan but expect no fire sale for now at the world’s most indebted property developer, two sources with direct knowledge of the matter said.

The audit, previously unreported, highlights how Beijing is taking charge at Evergrande after the real estate giant missed payments on two overseas bonds, triggering a restructuring to address Evergrande’s more than $300 billion in liabilities.

Assessing the value of the assets, and determining if there are any hidden ones, will also allow the authorities to decide whether a bailout involving state-owned entities is necessary, the sources said.

The fate of Evergrande and other indebted Chinese property companies has gripped financial markets in recent months amid fears of knock-on effects around the world.