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China property shares firm after PBOC says Evergrande woes manageable

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The China Evergrande Centre is seen in Hong Kong, China. August 25, 2021. REUTERS/Tyrone Siu

HONG KONG, Oct 18 (Reuters) – Shares of Chinese language property builders climbed on Monday after China’s central financial institution calmed markets by saying spillover results from Evergrande’s debt woes had been controllable and the nation’s economic system is “doing properly”.

High builders Nation Backyard and Sunac China jumped over 4% and eight%, respectively, in early buying and selling however China Vanke declined 2.6%.

The Individuals’s Financial institution of China Governor Yi Gang stated on Sunday China’s economic system faces challenges akin to default dangers for sure companies as a result of “mismanagement”, and that authorities are retaining a detailed eye “so they don’t change into systematic dangers”.

On Friday, one other PBOC official stated the spillover impact of China Evergrande Group’s debt issues on the banking system had been controllable and particular person monetary establishments’ threat exposures weren’t huge.

World monetary markets have been rocked by contagion concern over a liquidity disaster at China Evergrande Group which has over $300 billion in liabilities.

The broader market eased 0.5%.

Reporting by Clare Jim; Enhancing by Stephen Coates

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