BEIJING/HONG KONG, (Reuters) – Chinese authorities are looking into the assets and chairman of China Evergrande Group Hui Ka Yan. However, they do not expect a sale at this world-leading property developer. Two sources who have direct knowledge of the situation said that the Chinese authorities will continue to monitor the company’s financial affairs.

This audit, which was previously unknown, shows how Beijing took control of Evergrande following the failure to pay two bonds overseas. It triggered a restructuring that will address Evergrande’s liabilities totalling more than $300 billion.

The sources stated that authorities will be able to determine whether it is appropriate for a state-owned entity to receive a bailout by assessing the assets and finding hidden assets.

Recent months have seen financial markets captivated by Evergrande and other Chinese property businesses that are in debt to China, amid concerns about knock-on consequences around the globe.

Beijing tried repeatedly to reassure investors. However, it hasn’t yet revealed how it intends to stabilize Evergrande. Evergrande was last week deemed in “restrictedDefault” by Fitch Ratings following it missing coupon payments of $82.5million.

A newly established risk management committee at Evergrande is being steered by representatives of state-owned entities. One source claimed that previous findings from the authorities have shown Evergrande’s liquidity problem to be more complex than they expected.

A source close to regulators said that there is no hurry to implement any disposal plans. This refers to potential divestment businesses such as a property management unit or an electric vehicle manufacturing division.

Evergrande refused to comment. Hui and Guangdong’s provincial governments could not be reached.

Hui, now 63 years old, the founder of property developers and currently owns around 60%, has sold luxury assets such as three homes, art, and calligraphy to free up cash.

Forbes Magazine reported in September that Hui has earned an estimated $8 billion in cash dividends from Evergrande’s 2009 market debut. However, the actual value of his personal fortune remains unknown.

ASSET SALES

Evergrande may be in danger of defaulting on $19 billion worth of international bonds due to its missed payments.

Evergrande is yet to comment on missed payments but has stated that it will continue to work with restructuring its offshore debt which will be China’s largest.

A second source stated that even if the local government did intervene, it would only be able to buy a small portion of Evergrande’s assets. According to the source, Evergrande will not default on its loans in an intentional manner.

Reuters reports that Beijing encouraged state-backed developers and firms owned by government to acquire Evergrande’s assets.

China’s Central Economic Work Conference stated last week that enterprises should make provisions for self-rescue, and regulators and local governments need to develop plans to mitigate and manage financial risk.