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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
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)