MNI BRIEF: PBOC Urges Firms To Fulfill Dollar Bond Obligations

China's regulators will urge developers that have issued offshore dollar bonds to fulfill obligations and resolve any debt problem legally and properly, a high-ranking People's Bank of China official told reporters Friday. Regulators have observed the slump in offshore dollar bonds triggered by defaults of some Chinese developers and some developers' moving to redeem their offshore dollar bonds will help boost market confidence, said Zou Lan, head of the financial market department of the PBOC.

The spillover effect of Evergrande into the financial sector is controllable since less than one third of its debt involves financial institutions, said Zou, noting the authorities are pressing the company to dispose its assets and resume its projects to ensure rights of house buyers.

The financial sector will work with housing managing authorities and local governments to give support for its projects, he said, pointing out the central bank will ensure developers get funded at an orderly pace and guarantee the "health" development of the property market.