Evergrande warned that it might not be able to repay its debts and the Chinese authorities moved quickly to address the situation.
Evergrande said in an announcement on the Hong Kong Stock Exchange there was no guarantee it would have enough funds to meet debt repayments.
Evergrande said in its announcement that there is no guarantee that the Group will have enough funds to continue to perform its financial obligations.
The filing was made at 8 pm. The People's Bank of China, the Banking and Insurance Regulatory Commission, and the Securities Regulatory Commission all responded to Hong Kong time on Friday.
The chairman of China Evergrande Group was summoned by the Guangdong province.
The provincial government said it would send a working group to the company to strengthen internal controls. The local government said the move is to "resolve risks, protect the interests of all parties, and maintain social stability."
The Chinese real-estate industry is in turmoil as Evergrande struggles to pay off its $300 billion debt pile. The investors are worried about the impact on global markets.
Millenials in China are having a hard time buying homes due to concerns over whether Evergrande will be able to deliver apartments.
The country's banking and insurance regulators said in a statement that they would increase support for guaranteed rental housing. The securities regulator said it would support funding for property developers if there was a spillover from Evergrande.
The People's Bank of China acknowledged in its statement that the Guangdong government is now in charge and supports the move to send in a working group.
The problem of the Guangdong government is being made clear by the PBOC. If someone takes the heat for people losing money, it will be the Guangdong government. "This is not a problem," said the note published on the Smartkarma platform.
"This is going to be the way of every major government restructuring takeover of a heavily over-indebted conglomerate in the past few years," said Lundy in his note.
In the last few years, high-profile corporate meltdowns have taken similar paths, including Anbang Insurance, HNA Group, and a few others.
In its filing to the Hong Kong Stock Exchange on Friday, Evergrande said it had received a demand for $260 million. The company has a 30-day grace period, which ends at the end of today, to make up the money it missed out on.
The Evergrande shares on the Hong Kong Stock Exchange are at an 11-year low.
