A People’s Bank of China official has said the spillover of a crisis at Evergrande on the financial system was “controllable”, in the central bank’s first official comments on the world’s most indebted developer since it missed international bond payments last month.
The statement came as the company faces increasing scrutiny from regulators ahead of a potential default next week, with Hong Kong’s audit watchdog announcing a probe into PwC’s most recent audit of its accounts.
Zou Lan, an official at the PBoC, told reporters at a press conference on Friday evening that the Evergrande situation was being resolved by local governments and authorities through “market and rule of law principles”, according to state media.
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