New week, same China Evergrande worries – China looks to make good for home buyers. Bondholders not so much.

News

Bloomberg with a report on Chinese authorities looking to stem contagion risk from Evergrande:

A summary of where we are at, in brief:

  • China Evergrande Group edges closer to a massive restructuring
  • Beijing signaling it’s willing to prop up healthy developers, homeowners and the real estate market at the expense of global bondholders
  • Chinese authorities have dispatched top financial regulators to nudge the country’s massive banks to ease credit for homebuyers and support the property sector. 
  • They also bought out part of Evergrande’s stake in a struggling bank to limit contagion

China is out on holiday this week, but efforts such as the above will continue in earnest. Chinese markets reopen on Friday. 

Articles You May Like

Morgan Stanley is due to release fourth-quarter earnings
Sterling Slides Further as UK Fiscal Concerns Persist, UK-China Trade Efforts Fail to Reassure Markets
UK CPI inflation expected to edge up slightly in December, core rate to ease
Gold Price Today: Yellow metal prices jump by Rs 700/10 gm this week, silver trades flat
Bank of America tops estimates on better-than-expected investment banking, interest income

Leave a Reply

Your email address will not be published. Required fields are marked *