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China Weighs Breaking Up Evergrande to Contain Property Crisis

  • Proposal calls for Evergrande to sell most property assets
  • Electric vehicle, service units would initially be kept intact
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WATCH: Chinese authorities are said to be weighing a proposal to break up Evergrande to prevent a disorderly collapse of the company. Bloomberg’s Rebecca Choong Wilkins reports.Source: Bloomberg
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Chinese authorities are considering a proposal to dismantle China Evergrande Group by selling the bulk of its assets, according to people familiar with the matter.

The restructuring proposal, submitted to Beijing by officials in Evergrande’s home province of Guangdong, calls for the developer to sell most assets except for its separately listed property management and electric vehicle units, the people said, asking not to be identified discussing a private matter. A group led by China Cinda Asset Management Co., a state-owned bad debt manager and major Evergrande creditor, would take over any unsold property assets, the people said.