onsdag 22. september 2021

Evergrande crisis will hurt China’s economic growth, says former central bank advisor

Evergrande’s debt crisis will slow down China’s economic growth, but will likely have minimal spillover on the country’s financial system, according to a former advisor to China’s central bank. Evergrande is the world’s most indebted property developer with total liabilities of around $300 billion. The company has been struggling to pay its suppliers and warned investors it could default on its debts, with one key payment due as soon as this week.

“The impact is on the real economy because with the default of Evergrande, there’ll be [a] slowdown in developments of many projects,” Li Daokui, formerly an advisor to the People’s Bank of China, told CNBC “Squawk Box Asia” on Wednesday.