(Sept 25): The closer investors are to Beijing, the less they fear that China Evergrande Group’s debt crisis will cascade into a wider financial meltdown. That’s not to say that Chinese investors don’t see significant fallout coming from Evergrande, just that they expect it to be largely contained to companies with close links to the developer. That includes banks that extended credit, investors in its bonds, suppliers that depend on its projects and some of Evergrande’s peers. Financial watchdogs encouraged Evergrande to take all measures to avoid a near-term default on dollar bonds, Bloomberg reported this week. “Domestic investors are not very concerned about Evergrande triggering systematic risks, as they have much higher confidence in the government’s ability to coordinate an orderly debt restructuring.”

Source: The Edge Markets September 25, 2021 01:07 UTC