Analysis: China Dusts Off Proven Playbook After Evergrande Default Warning

The Guangdong provincial government is sending a working team to China Evergrande Group (03333.HK) after the indebted developer warned of possible cross-defaults on dollar bonds, indicating a government-coordinated effort to mitigate the company’s $300 billion debt crisis.

The government of southern China’s economic powerhouse Guangdong summoned Evergrande Chairman Hui Ka Yan late Friday after the company said it might be unable to meet $260 million of obligations under a guarantee, hinting at the risk of cross-defaults on its $19.2 billion of outstanding dollar bonds.