PBOC Gov says default risks are a challenge, authorities monitoring “so they do not become systematic risks”

People’s Bank of China Governor Yi Gang spoke over the weekend. 

He addressed concerns over the property development sector (there is a looming default of China Evergrande Group when the ‘grace period’ for its first nonpayment expires on the 23rd of October)

  • said default risks for some firms and operational difficulties of small and mid-sized banks are among the challenges for China’s economy
  • authorities are keeping a close eye “so they do not become systematic risks”
  • the highest priority for authorities is the protection of consumers and homebuyers
  • “The interest of creditors and shareholders will be fully respected strictly in accordance to law, the law has clearly indicated the seniority of liabilities.”

People's Bank of China Governor Yi Gang spoke over the weekend. 
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