As President Xi Jinping looks to bring “common prosperity” to China, bailing out a billionaire isn’t a great look.
Yet allowing a default at China Evergrande Group, owned by Hui Ka Yan, is also risky: The world’s most indebted property developer has assets equivalent to 2% of China’s gross domestic product. A collapse would hurt millions of homeowners, company employees and retail investors.
The company’s bonds are down 75% since late May, and slipped further today after S&P Global Ratings said it was on the brink of a default. The credit assessor said Beijing would only intervene if contagion infected multiple other major developers.
Bloomberg Balance of Power 21 09 21
© Copyright: Матвеев Владимир Иванович, 2021
Свидетельство о публикации №221092101133
Свидетельство о публикации №221092101133
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