Chinese property developer Evergrande’s struggles could ripple through the global economy, according to the International Monetary Fund (IMF). It came as the debt-laden property giant has missed payments on bond interests for the third time in three weeks. “While the authorities have the tools to step in if the situation were to escalate, there is a risk that broader financial stress may emerge, with implications for both the Chinese economy and financial sector as well as global capital markets at the extreme,” the IMF said in its Global Financial Stability Report published this month. Researchers said the strains can widely spread to the domestic property market, financial institutions such as banks and trust companies, offshore markets, and global investors. “There are challenging trade-offs in terms of the extent of support to affected financial entities and sectors and the timing of the intervention,” according to the report. Since Evergrande’s eye-watering $300 …
‘Broader Financial Stress May Emerge:’ IMF Warning About Evergrande Crisis
October 13, 2021
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