Tag: China

(21 September 2021)  Global stock markets are sharply lower this week as Evergrande, China's second largest real estate developer, teeters on the brink of bankruptcy.  While default now seems inevitable, the more important question is whether the Chinese government will provide a bailout.  Even a partial bailout of its $300 billion in debt would help not only the 1.5 million customers who invested their savings in new homes, but it also would reduce the risk of financial contagion.  Evergrande is large enough that a disorderly default would damage...