Chinese councils seize control of Evergrande presales

Councils in China have seized control of Evergrande’s presales and set up custodian accounts, to ensure that the money is not diverted to creditors. At least eight provinces, including Guangzhou, Zhuhai and Jiangsu, have set up the special accounts since August. The property developer is reeling under $305bn of debt and last week failed to make an $84m interest payment. In recent months, the developer, which specialises in the borrow-to-build business model, has stopped repaying some investors and suppliers and halted building work. China’s housing regulator had set a deadline of last Friday for regional offices to report on the funding gaps facing its unfinished projects. It is not clear if this deadline was met. The Times (£) The FT (£)