Evergrande poses 'limited' risk of economic crisis in China, Bank of Singapore says

Evergrande Group, China’s second-biggest property developer by sales, currently poses a “limited” risk of triggering an economic crisis in the country as investors weigh the risks of a delayed intervention by the government to rescue the severely indebted company, according to the Bank of Singapore Concerns about the potential default of Evergrande will heighten market volatility because of uncertainties around the company’s fate but the risk of financial contagion will eventually be “relatively contained”, the lender said in a research note on Monday. “While we would not be surprised by heightened volatility as the market grapples with uncertainty regarding the…