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“We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy,” the rating agency said in a note dated Sept 20.
“Evergrande failing alone would unlikely result in such a scenario,” S&P said.
Evergrande’s shares have taken a hammering in recent days after Chinese regulators warned that its $305 billion in liabilities could lead to widespread losses in China’s financial system if its debts were not stabilised.
