Evergrande Risks Are ‘Controllable,’ China’s Central Bank Says Amid Growing Fears


The debt crisis plaguing China Evergrande Group is “controllable” and unlikely to spill over, the country’s central bank said on Oct. 15 amid growing fears that its potential collapse could trigger a global domino effect. With over $300 billion worth of liabilities, Evergrande is the world’s most indebted real estate developer. The company has missed three bond payments in three weeks, intensifying fears of a contagion effect in China’s property market. In Beijing’s first public remarks on the issue, Zou Lan, head of financial markets at the People’s Bank of China, sought to allay investors’ fears, saying that Evergrande’s troubles are an “isolated phenomenon.” “The Evergrande Group has poorly managed in recent years and failed to exercise prudence according to changing market conditions. Instead, it has blindly diversified and expanded its business,” Zou told reporters in a press briefing on Friday. About $89 billion of Evergrande’s liabilities is in loans …

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