CSRC says spillover of Evergrande's default limited
The spillover risk of Chinese developer Evergrande Group's problems into the capital market will be controllable, the China Securities Regulatory Commission, the country's top securities regulator, said on Friday.
The CSRC will continue to safeguard the financing functioning of the market, support reasonable financing of real estate developers, and promote a steady development of the capital market and the real estate sector, the commission said in a statement.
The statement came after Evergrande Group said on Friday that it may be unable to meet a guarantee obligation of $260 million, which the CSRC said is an individual case.
The country's real estate sector remains on a healthy development track as a whole, the commission said, with the financial and operational indicators of listed companies and bond issuers related to the sector remaining "overall healthy".
The commission added the default rate of the onshore exchange bond market has maintained at a relatively low level of 1 percent, while the A-share market is performing steadily with resiliency.
