Stock Groups

IMF says China has tools to avoid Evergrande’s problems becoming systemic crisis By Reuters


© Reuters. FILEPHOTO: Man walks past unfinished housing buildings of Evergrande Oasis. This complex was built by Evergrande Group in Luoyang on September 15, 2021. REUTERS/Carlos Garcia Rawlins

WASHINGTON (Reuters) – The International Monetary Fund on Tuesday said it is closely following developments surrounding China Evergrande Group, but believes Beijing has the tools to prevent the situation from turning into a systemic crisis.

Gita Gopinath, chief economist at the IMF, said to Reuters that China Evergrande Group’s real estate sector is a major part of China’s economy. This could impact China’s financial stability and economic activity.

Gopinath indicated that “we are closely monitoring the developments in China,” and stressed the need to reform the regulatory system to deal with the high-leverage property sector. We believe China still has the resources and policy room to stop this becoming a major crisis.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.