What are the systemic risks of an Evergrande collapse?
The debacle is a test of Xi Jinping’s commitment to reshaping the economy
CHINA’S FINANCIAL authorities are honing a new skill: the “marketised default”—or an orderly market exit and well-managed restructuring for troubled companies. The term has surfaced in government documents as regulators manage larger, more frequent and highly complex defaults. They have had some successes. Evergrande, a massive Chinese property developer on the brink of collapse, is proving to be anything but.
This article appeared in the Finance & economics section of the print edition under the headline “The folly of Evergrande”
Finance & economics September 25th 2021
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- China throws a wrench into a transpacific trade pact
- What are the systemic risks of an Evergrande collapse?
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- Beware the backlash as financiers muscle into rental property
- How threatening are the high levels of corporate debt?
- America’s debt ceiling is a disaster, though fiscal rules can help
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