Rights of Evergrande shareholders, creditors to be respected, says China cenbank chief

The rights of shareholders and creditors of cash-strapped property developer China Evergrande Group (3333.HK) will be “fully respected” based on their legal seniorities, central bank governor Yi Gang said on Thursday.

The risk caused by a few Chinese real estate companies in the short term will not undermine Hong Kong’s capital market, he told a financial forum in the Asian financial hub.

Evergrande’s missed deadline this week on debt payment has put it at risk of becoming China’s biggest defaulter, with $300 billion in liabilities, even as hopes for a managed debt restructuring calmed fears of a messy collapse.