How will Evergrande resolve the demolition issue in Hainan?

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Evergrande to Communicate with Authorities Regarding Hainan Demolition Order

Evergrande has stated its intention to actively communicate with the relevant authorities following an order to demolish 39 buildings at its "Ocean Flower Island" development in Hainan province. The company has indicated it will proceed in accordance with the guidance provided in the decision letter to properly resolve the issue. This directive from authorities, issued on December 30, specifically targets one plot of land within the development.
Demolition Order Issued for 39 Buildings

Authorities mandated the demolition of 39 buildings situated on an artificial archipelago in Hainan, a popular tourist destination. The structures were deemed to have been constructed illegally. This order affects a specific plot of land within Evergrande's expansive "Ocean Flower Island" project.
Company's Commitment to Communication

In response to the demolition directive, Evergrande has announced its plan to engage in active communication with the authorities. The company's statement to the Hong Kong stock exchange indicated a commitment to addressing the situation based on the instructions outlined in the official decision letter.
Context of Property Sector Challenges

The directive comes at a time when Chinese property firms are facing significant challenges, driven by Beijing's efforts to reduce high levels of debt within the real estate sector and curb speculative practices. Evergrande itself is grappling with substantial liabilities, amounting to approximately US$300 billion, which has impacted its ability to meet its financial obligations to bondholders and investors.

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How will Evergrande resolve the demolition issue in Hainan?

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