China's Evergrande should not bet on govt bailout – Global Times editor

This post was originally published on this site

Hu Xijin said on his WeChat social media account on Thursday he did not think an Evergrande bankruptcy would trigger a systemic financial storm like Lehman Brothers, because it was a real estate business and the downpayment ratios in China were very high.

Global Times is a nationalistic tabloid published by the Communist Party’s People’s Daily. Its views do not necessarily reflect the official thinking of policymakers.

With total liabilities of more than $300 billion, Evergrande is scrambling to raise funds as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or a government bailout.