The report highlights that Chinese authorities are scrutinising assets of Evergrande and its chairman, Hui Ka Yan, but expect no fire sale for the time being.

If anything else, the audit reaffirms how Beijing is taking control of the situation. In turn, it allows authorities to decide on whether a state-owned bailout would be necessary. For now though, that does not seem to be the case.

A close source to the regulators mentioned that:

"Currently, there's no rush to introduce any disposal plans."

That is referring to the possibility of a divestment of Evergrande's businesses. Meanwhile, a second source said that if the local governments were to intervene, they would only buy up part of Evergrande's assets.