The financial world is watching the struggles of China Evergrande Group, one of the largest property developers on Earth and certainly the most indebted. But it has an array of financial tools that it believes are strong enough to stem a financial panic if matters worsen. China has a lot riding on its ability to contain the fallout from an Evergrande collapse. By not forcefully signalling an Evergrande bailout, the Chinese government is essentially trying to force both investors and Chinese companies to stop channelling money to risky, heavily indebted companies. Those controls helped insulate China from an Asian financial crisis in 1997 and 1998 that heavily damaged other regional economies.

Source: bd News24 September 27, 2021 05:48 UTC