Several local governments in China have set up special custodian accounts for property projects of its most indebted developer, Evergrande , to protect funds earmarked for housing projects from being diverted, media outlet Caixin said.
An Evergrande sign is seen at the Evergrande Automotive R&D Institute Headquarters of China Evergrande Group in Shanghai, China September 24, 2021. REUTERS/Aly Song/Files
The special accounts have been set up since late August in at least eight provinces where Evergrande has the most unfinished projects, the Chinese outlet said on Sunday, citing a source close to the developer's management team.The custodian accounts aim to ensure homebuyers' payments are used to complete Evergrande's housing projects, and not diverted elsewhere, such as to creditors, Caixin said.
The housing regulator has also set a Sept. 24 deadline for regional offices to report on the funding gaps facing Evergrande's unfinished projects, Caixin said, but it was not immediately clear if this had been met.
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