China likely won’t bail out Evergrande directly unless there’s ‘far-reaching contagion,’ S&P says

0 10
Outside the China Evergrande Group Royal Mansion residential development under construction in Beijing, China, on Friday, Sept. 17, 2021.Gilles Sabrie | Bloomberg via Getty ImagesThe Chinese government is not likely to step in to give direct support to debt-ridden developer China Evergrande Group, according to S&P Global Ratings."We do not expect the government to provide any direct support to Evergrande," said the S&P credit analysts in a Monday report. "We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy.""Evergrande failing alone would unlikely result in such a scenario," they added.Even in Evergrande's home province, the developer is insignificant to Guangdong's vast local economy — it is not too big to fail.Fears over a potential contagion from Evergrande into the broader Chinese economy and beyond dragged down the Hang Seng index in Hong Kon
Subscribe or log in to read the rest of this content.
Leave A Reply

Your email address will not be published.

At The Centre of Every Trade
$59.95/month