© Reuters. FILE PHOTO: The China Evergrande Centre building sign is seen in Hong Kong, China. August 25, 2021. REUTERS/Tyrone Siu/File Photo
HONG KONG (Reuters) – Chinese state-media Global Times’ editor in chief said struggling Evergrande Group should use market means to save itself and should not bet on a government bailout as it deems itself “too big to fail”.
Hu Xijin said on his WeChat social media account on Thursday he did not think an Evergrande bankruptcy would trigger a systemic financial storm like Lehman Brothers, because it was a real estate business and the downpayment ratios in China were very high.
Global Times is a nationalistic tabloid published by the Communist Party’s People’s Daily. Its views do not necessarily reflect the official thinking of policymakers.
With total liabilities of more than $300 billion, Evergrande is scrambling to raise funds as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or a government bailout.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment