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China’s Evergrande should not bet on govt bailout

by Mike Robinson

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© Reuters. FILE PHOTO – The sign for the China Evergrande Centre is visible in Hong Kong (China). August 25, 2021. REUTERS/Tyrone Siu/File Photo

HONG KONG (Reuters) – Chinese state-media Global Times’ editor in chief said struggling Evergrande Group should use market means to save itself and should not bet on a government bailout as it deems itself “too big to fail”.

Hu Xijin stated on WeChat that he didn’t think Evergrande bankruptcy could trigger a financial systemic crisis like Lehman Brothers. This was because the company is a real-estate business with high downpayments.

Global Times, a tabloid that is nationalistic and published by the Communist Party’s People’s Daily, is called Global Times. These views may not reflect official policymakers’ thinking.

Evergrande has more than $300 billion in liabilities and is struggling to find funds.

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