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SIN­GA­PORE—Chi­nese au­thor­i­ties are ask­ing lo­cal gov­ern­ments to pre­pare for the po­ten­tial down­fall of China Ever­grande Group, ac­cord­ing to of­fi­cials fa­mil­iar with the dis­cus­sions, sig­nal­ing a re­luc­tance to bail out the debt-sad­dled prop­erty de­vel­oper while brac­ing for any eco­nomic and so­cial fall­out from the com­pa­ny’s tra­vails. They said that lo­cal gov­ern­ments have been tasked with pre­vent­ing un­rest and mit­i­gat­ing the rip­ple ef­fect on home buy­ers and the broader econ­omy, for ex­am­ple by lim­it­ing job losses—sce­nar­ios that have grown in like­li­hood as Ever­grande’s sit­u­a­tion has wors­ened. Lo­cal gov­ern­ments have been or­dered to as­sem­ble groups of ac­coun­tants and le­gal ex­perts to ex­am­ine the fi­nances around Ever­grande’s op­er­a­tions in their re­spec­tive re­gions, talk to lo­cal state-owned and pri­vate prop­erty de­vel­op­ers to pre­pare to take over lo­cal real-es­tate projects and set up law-en­force­ment teams to mon­i­tor pub­lic anger and so-called “mass in­ci­dents,” a eu­phemism for protests, ac­cord­ing to the peo­ple.
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rspl - SIN­GA­PORE—Chi­nese au­thor­i­ties are ask­ing lo­cal gov­ern­ments to pre­pa...

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