How China Keeps Putting Off Its ‘Lehman Moment’
Remember the Evergrande crisis?
It was little more than a year ago that Evergrande Group, the Chinese property developer, was about to collapse under more than $300 billion in debt. There were warnings of a catastrophic default that would ripple through China’s economy, maybe even set off a global depression. China, it was said, faced its “Lehman moment” — when a corporate failure like that which felled the once-venerable Wall Street investment bank in 2008 finally forces Chinese Communist Party policymakers to reckon with systemic financial weakness.
Not quite. Evergrande is not out of the woods, but a catastrophic implosion has been avoided after the Chinese government stepped in to help arrange a restructuring of much of its debt.… Seguir leyendo »