China steps up funding oversight of Evergrande property projects

Special accounts set up to oversee, review fund use of debt-laden firm

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.
 
Reeling under $305 billion of debt, Evergrande missed a payment deadline on a dollar bond last week, and its silence on the matter has set global investors wondering if they will have to swallow large losses when a 30-day grace period ends.
 
The special accounts have been set up since late August in at least eight provinces where Evergrande has the most unfinished projects,