Can China arrest Evergrande blowback with social media curbs and pumping in cash?

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As China’s cash strapped real estate major Evergrande Group managed to pay the first 10 per cent instalment of wealth management products that was in sync with the repayment proposal announced earlier, there has been some relief for the worried business community. According to <a href="https://www.bloombergquint.com/onweb/evergrande-pays-back-some-cash-owed-to-wealth-product-investors">BloomberQuint</a>, the disgraced company’s website states that payments have been deposited into investors’ accounts.</p>
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The cash instalment plan is one of three repayment options offered by Evergrande earlier this month to assuage angry buyers of the high-yield products, the news organisation said.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/can-china-s-debt-ridden-local-govts-rescue-the-falling-real-estate-giant-evergrande-117524.html">Can China's debt ridden local govts rescue the falling real estate giant, Evergrande?</a></strong></p>
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The country’s local governments have been asked “to prepare” for the demise of the once loved company which featured in the coveted list of Fortune 500 and step in at the last moment.</p>
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The Chinese authorities have asked financial institutions to help these local governments stabilize the rapidly cooling housing market and ease mortgages for some homebuyers, another report by the news organisation said. Yi Gang, Governor, People’s Bank of China, the country’s central bank, also held a meeting with various stakeholders.</p>
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The financial institutions and the local governments have been urged ‘to jointly maintain the steady and healthy development of the real estate market and safeguard the legitimate rights and interests of housing consumers.’</p>
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<strong>Also read: <a href="https://www.indianarrative.com/economy-news/chinese-real-estate-major-evergrande-fails-to-meet-payment-deadline-inches-closer-towards-default-116979.html">China’s real estate giant Evergrande misses payment deadline, headed for default</a></strong></p>
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Meanwhile, there have been major protests by concerned home buyers and investors.</p>
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According to <a href="https://www.reuters.com/world/china/wechat-blocks-china-evergrande-messaging-groups-some-users-say-2021-09-29/">Reuters</a>, Tencent Holdings` WeChat platform has blocked at least eight instant messaging groups in China that were being used by angry protestors. These groups of about 200 to 500 people each had discussed members` claims and organised protests. “Members said they were prevented from sending new messages to the groups starting from Tuesday morning,” the Reuters report said.</p>