Evergrande is quickly becoming the biggest financial worry in a country with no shortage of them. Fears of a default by the real estate developer, with $300 billion in liabilities and links to myriad banks, have roiled global markets as investors assess the potential impact on the financial system and the broader economy. Yvonne Man and David Ingles take a deeper dive into the latest developments and explores what what lies ahead.
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Francisco Gimeno - BC Analyst We were cautiously optimistic last week about Evergrande. Too big to fall, isn't it? Then, last Friday, it didn't comply with its financial obligations, and now there is less than a month to see if it will comply or a default crisis start. Some remember 2008 when they say the same, everything was all right... until it wasn't. There is time yet to fix this, if China's government intervenes, either by supporting Evergrande or by somehow avoiding the cascade of defaults and crashes that could happen. Let's not forget also that Evergrande is just the symbol of all real property development sector in that country. And that global economy is not healthy just now.