LONDON — European Central Bank President Christine Lagarde believes Europe’s direct exposure to the embattled Chinese property company Evergrande would be “limited.”

It comes at a time when global stock markets are on high alert over Evergrande’s massive debt problems.

Investors fear Evergrande, which has seen its share price plummet in recent months amid a widespread crackdown by Beijing on highly leveraged developers, will default on a number of bond payments this week.

This company’s relationship with China’s economy is very strong. Financial institutions can be exposed via direct loans as well as indirect holdings to this cash-strapped development.

Market experts say a deepening liquidity crisis at Evergrande could send further ripples across the global economy, but they believe the issue will likely be contained by the Chinese government and is not expected to trigger imminent contagion.

Annette Weisbach of CNBC in Frankfurt, Germany said Thursday that Lagarde, the ECB, was closely monitoring the debt-laden developer.

She stated that they were looking into it. She said, “We monitor it and I received a briefing today earlier because I believe that all financial market are interconnected.”

“I have very vivid memories of [the] latest stock market developments in China that had a bearing across the world. Lagarde explained that the direct exposure to China would be minimal in Europe and the euro zone in particular.

When asked whether the ECB was prepared for the prospect of a chaotic global knock-on effect in the event of Evergrande’s collapse, Lagarde replied: “As I told you, for the moment, what we are seeing is [a] China-centric impact and exposure. I can’t speak for the United States [but] I can say for Europe that its direct exposure is limited.”

Lagarde made these comments shortly after Jerome Powell, the Chair of U.S. Federal Reserve said that Evergrande was facing debt issues unique to China.

On Wednesday, Powell stated to reporters that he didn’t see any parallels with the U.S. corporate sectors.

There is not much direct exposure to the United States in terms of its implications. Powell stated Wednesday that the big Chinese banks do not have a lot of exposure, however you could worry about how it might affect global financial conditions via global confidence channels or other things.

Powell said that he wouldn’t draw any parallels to the US corporate sector.

Hong Kong’s Hang Seng index rebounded more than 1% on Thursday, paring losses from earlier in the week as Evergrande Group rallied over 17%. On Wednesday, the property developer reassured investors by ending a local bond payment.