Evergrande’s crisis highlights China’s shortcomings

CHINA’S VAST and opaque financial system has long posed a threat to its economy and the world. The agonies of Evergrande, a property firm with towering debts, are a reminder of how hard it is to manage the risks. The government is attempting to impose an orderly default on some of its creditors but faces the risk of contagion. The episode also highlights a bigger question of whether President Xi Jinping’s crackdown on business will make it even harder to create a reformed financial system that is safer, more open and more efficient.