Stock Groups

China property shares firm after PBOC says Evergrande woes manageable By Reuters

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: A view of the China Evergrande Centre in Hong Kong, China. August 25, 2021. REUTERS/Tyrone Siu

HONG KONG, (Reuters) – Shares in Chinese property developers rose Monday as China’s central banking calmed the markets. It stated that Evergrande’s debt problems were manageable and that China’s economy was “doing well”.

Country Garden and Sunac China, top-tier developers, saw their shares rise by more than 4% and 8.8% in the early trades, while China Vanke dropped 2.6%.

Yi Gang of the People’s Bank of China stated that China’s economy has challenges, including default risk for some firms because of “mismanagement”. The authorities will be closely monitoring them “so they don’t become systematic risks”.

Another official from the PBOC stated Friday that the impact of China Evergrande Group’s debt issues on the banking sector was manageable, and the risk exposures to individual financial institutions were minimal.

Fear of contagion in the global financial market has caused panic over China Evergrande Group’s liquidity crisis. This group, which is responsible for more than $300 Billion in assets, created a fear that could spread to other markets.

In the broader market, it fell 0.5%

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. 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 MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. 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.



[ad_2]