Fitch warns an Evergrande default may have broad China economic effects, Property News & Top Stories


Source: straitstimes.com straitstimes.com

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HONG KONG (REUTERS) - Rating agency Fitch said that numerous sectors could be exposed to heightened credit risk if China's No.2 property developer Evergrande Group were to default, although the overall impact on the banking sector would be manageable. Evergrande is scrambling to raise funds to pay its many lenders and suppliers, as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or the less likely prospect of a bailout by Beijing. Regulators have warned of broader risks to the country's financial system if the company's US$305 billion (S$409.8 billion) of liabilities aren't contained. "We believe a...