The founder of Chinese real estate company Evergrande was summoned by the government after the company said it might not be able to meet its financial obligations.
Evergrande, which is in a debt quagmire of $ 300 billion, said in the statement it gave to the Hong Kong stock exchange.there is no guarantee that the company will have the financial funds to meet its legal obligations” he warned.
The People’s Bank of China said on Friday, Dec.
“Evergrande’s risks stem from its own poor management and blind expansion. Risks taken by individual companies in the short term will not affect liquidity in the medium and long term.
said.
Founder Yu, also known as Hui Ka Yan, on Friday sold 1.2 billion shares of Evergrande worth $344 million, reducing his stake in the company from 77% to 68%.
Beijing regulators invited the businessman to use his personal wealth to pay off his debts.
Although Evergrande has so far avoided default, the company continues to face challenges.