The world’s most indebted developer has warned Chinese officials it faces a potential default that could roil the nation’s $50 trillion (¥5.3 quadrillion) financial system unless regulators approve the company’s long-delayed stock exchange listing.
China Evergrande Group mapped out the scenario in an Aug. 24 letter to the Guangdong government seen by Bloomberg, in which the company sought support for a restructuring proposal needed to secure the listing and avert a cash crunch.
Some of Evergrande’s biggest strategic investors have the right to demand their money back if the company fails to win approval for a backdoor listing on the Shenzhen stock exchange by Jan. 31.
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