Terminally ill Evergrande spreads financial contagion

There are fears that Evergrande’s woes may spread beyond China.

China Evergrande Group, one of the biggest Chinese property developers, is like a terminally ill patient spreading an epidemic through China and beyond China. If the world’s most indebted property firm collapses, it could wreak severe damage to China’s economy and ripple throughout the wider Asian economy, so the Chinese government is expected to prevent a hard landing of the collapsing conglomerate, analysts predict.

On September 7, Moody’s and Fitch downgraded Evergrande to levels of near default. A Fitch report said, “the downgrade reflects our view that a default of some kind appears probable.”

A default by the Hong Kong-listed firm is likely, concurred SP Global...

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