Evergrande must not rely on bailout, says Global Times editor

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Evergrande must not rely on bailout, says Global Times editor
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State-backed newspaper says the debt-ridden property giant is not too big to fail

An exterior view of China Evergrande Centre in Hong Kong. Picture: REUTERS/BOBBY YIP

Evergrande is scrambling to raise funds to pay its many lenders and suppliers and investors, with regulators warning its $305bn of liabilities could spark broader risks to the country’s financial system if not stabilised. Global Times is a nationalistic tabloid published by the Communist Party’s People’s Daily. Its views do not necessarily reflect the official thinking of policymakers.

Evergrande is due to pay $83.5m interest on September 23 for its March 2022 bond. It has another $47.5m interest payment due on September 29 for the March 2024 notes. The bonds would default if Evergrande fails to pay the interest within 30 days.

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