Evergrande crisis not China’s Lehman moment – Citibank
|In the view of the analysts at Citigroup, China’s policymakers will step up measures and prevent the China Evergrande Group crisis from becoming a “Lehman Moment” for the country.
Key quotes
“Policymakers will likely uphold the bottom line of preventing systematic risk to buy time for resolving the debt risk, and push forward marginal easing for the overall credit environment.”
“Analysis of banks’ loan exposure to high-risk developers suggest credit risk is the highest for China Minsheng Banking Corp., Ping An Bank Co. and China Everbright Bank Co.”
Bank of Nanjing Co., Chongqing Rural Commercial Bank Co., Postal Savings Bank of China Co. are less vulnerable and “we would see any dip as an enhanced opportunity to buy quality names.”
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.