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.”
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Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
