(Dec 9): China Evergrande Group’s inability to meet its obligations is a market event and will be dealt with in a market-oriented way, the head of the nation’s central bank said. The comments provide the latest signal that Beijing won’t bail out Evergrande as it strains under more than US$300 billion (about RM1.26 trillion) in liabilities. Hong Kong has established an effective system and well defined legal provisions to deal with such issues, Yi said. Risks from a few firms in the short term will not undermine Hong Kong’s financial system in the long term, he said. Beijing’s reluctance to bail out the developer sends a clear signal that the Communist Party won’t tolerate massive debt build-ups that threaten financial stability.

Source: The Edge Markets December 09, 2021 20:31 UTC