Officials have warned state banks not to help overleveraged developers such as Evergrande,

 but directed them to issue credit to less indebted property groups in an effort to relieve the pressure on the real estate sector. 

The industry is estimated to account for about one-third of total economic output in the country.

Chinese creditors sue Evergrande for claims totalling $13bn

 “There is no way we can repay so many creditors with our limited resources,” said an Evergrande executive, who asked not to be identified. “We will let judges decide who gets paid and how much.”

Evergrande has also issued offshore bonds totalling $19bn.

FT 16 December 2021

https://www.ft.com/content/941c0e96-ebf1-42ee-97ec-ad6764f35cbf