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S&P does not expect Beijing to provide any direct support to embattled Evergrande By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: The Evergrande Oasis logo is visible outside of the Luoyang housing site. It was built by Evergrande Group. Picture taken September

SINGAPORE (Reuters) – S&P Global (NYSE:) Ratings said it does not expect Beijing to provide any direct support to embattled China Evergrande Group, amid growing investor fears the property giant could default on its debt mountain as two repayment deadlines loomed.

In a Sept. 20 note, the agency stated that Beijing will only have to intervene if there’s a widespread contagion that causes multiple developers to collapse and poses systemic risk to the economy.

“Evergrande failing alone would unlikely result in such a scenario,” S&P said.

Evergrande shares fell after Chinese regulators said that the $305 billion of liabilities it owes could cause widespread financial losses across China’s economy.

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