EXCLUSIVE: China Reacts to Evergrande’s Imminent Collapse – Economy Weaker than Being Reported
China is now reacting to the failure of real estate developer Evergrande, with $310 Billion in debt.
The AP reported [emphasis added]:
China’s central bank expanded the supply of money for lending Monday as Beijing tried to reassure its public and investors the economy can be protected if a troubled real estate developer’s $310 billion mountain of debt collapses.
Evergrande Group’s struggle to turn assets into cash has prompted fear a default might chill Chinese lending markets and cause global shockwaves. Economists say the ruling Communist Party can prevent a credit crunch but it wants to avoid sending the wrong signal by bailing out Evergrande in the middle of a campaign to force companies to cut debt Beijing worries is dangerously high.
