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9/23, 12:30 PM (Source: TeleTrader)
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China prepares for Evergrande collapse - report

Chinese officials have instructed local government agencies and state-owned businesses to start the preparations for the potential collapse of China Evergrande Group, the Wall Street Journal reported on Thursday.

Citing people familiar with the matter, the report indicates that the Chinese government is reluctant to bail out Evergrande if the company were to default on its payments and is bracing for any potential economic and social fallout from the real estate giant's downfall.

Previously, Evergrande's chairman stated that the company will try its best to resume working, with one of the first major payment deadlines coming later today. Officials from central banks around the world predicted that a potential collapse would remain localized to China, but the United States is reportedly preparing a response if there is a crisis spillover.

Breaking the News / OL