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Rights of Evergrande shareholders, creditors to be respected, says China central bank chief - Metro US

Rights of Evergrande shareholders, creditors to be respected, says China central bank chief

The China Evergrande Centre building sign is seen in Hong Kong

HONG KONG (Reuters) – The rights of shareholders and creditors of cash-strapped property developer China Evergrande Group will be “fully respected” based on their legal seniorities, central bank governor Yi Gang said on Thursday.

The risk caused by a few Chinese real estate companies in the short term will not undermine Hong Kong’s capital market, he told a financial forum in the Asian financial hub.

Evergrande’s missed deadline this week on debt payment has put it at risk of becoming China’s biggest defaulter, with $300 billion in liabilities, even as hopes for a managed debt restructuring calmed fears of a messy collapse.

(Reporting by Alun John; Editing by Sumeet Chatterjee and Clarence Fernandez)

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