S&P does not expect Beijing to provide any direct support to embattled Evergrande
SINGAPORE, Sept 21 (Reuters) – S&P World Scores stated it doesn’t anticipate Beijing to supply any direct help to embattled China Evergrande Group , amid rising investor fears the property large might default on its debt mountain as two reimbursement deadlines loomed.
“We consider Beijing would solely be compelled to step in if there’s a far-reaching contagion inflicting a number of main builders to fail and posing systemic dangers to the financial system,” the score company stated in a notice dated Sept 20.
“Evergrande failing alone would unlikely lead to such a state of affairs,” S&P stated.
Evergrande’s shares have taken a hammering in latest days after Chinese language regulators warned that its $305 billion in liabilities might result in widespread losses in China’s monetary system if its money owed weren’t stabilised.
Reporting by Anshuman Daga
Enhancing by Shri Navaratnam
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