Hainan’s Danzhou Challenges Evergrande’s Property-for-Debt Plan

What’s new: Regulators in Danzhou city in southern China’s Hainan province tightened oversight of China Evergrande Group deals to repay debts with properties as local authorities raise concerns over the risks of such transactions.

Housing authorities in Danzhou this week told Evergrande subsidiaries that it would closely scrutinize the debt claims of creditors for properties in Ocean Flower Island, a mega resort under development by Evergrande in the city. Transactions using assets in the projects to repay unrelated debts will be prohibited, the authorities said.