On December 6, 2021, Evergrande Group announced in a file to the Hong Kong stock exchange that it had decided to establish a risk management committee.

According to the announcement, the members of the committee include Xu Jiayin, chairman of the board of directors and executive director of Evergrande, Liu Zhihong, deputy general manager of Guangdong Holdings Ltd., Pan Darong, chief financial officer and executive director of Evergrande, Zhao Limin, vice president of China Cinda Asset Management Co., Ltd., Li Feng, chief capital operation officer of Yuexiu Group, Chen Yong, director of compliance of Guosen Securities and Hao Han, partner of Zhonglun Law Firm.

Xu is the chairman of the risk management committee, and Liu serves as the co-chairman.

It’s worth mentioning that the risk management committee members have diverse backgrounds, including current executives of Evergrande and many executives and professionals from leading companies.

Evergrande indicated in the announcement that the risk management committee is not a subordinate committee of the board of directors. However, it would play an essential role in mitigating and eliminating the future risks of the group. The rich experiences and extensive resources that committee members have will help the group resolve the current difficulties more smoothly.

Market analysts believe that Evergrande is currently facing a series of challenges in operation and finance. The establishment of this risk management committee, with members having rich experience and professional abilities in business operations, financial management, debt disposal, and law, will help Evergrande solve the difficulties it currently faces. It is an active measure of Evergrande to deal with the debt crisis and respond to risk challenges, following the principles of professionalization, marketization, and the rule of law for debt and risk treatment.