IMF Economist Gopinath: China has tools to avoid Evergrande's problems becoming systemic crisis

Anil Panchal FXStreet

“China has tools and policy space to prevent the Evergrande situation from turning into a systemic crisis,” said the International Monetary Fund’s (IMF) Chief Economist Gita Gopinath during an interview, per Reuters.

“Real estate sector was a big part of China's economy, and China Evergrande's potential default could have implications for China's economic activity and financial stability,” added IMF’s Gopinath.

Key quotes

We are following the developments in China very closely.

Downside risks linked to Evergrande could have implications for china's economic activity and financial stability.

Market reaction

The news adds to the recent cautious optimism in the market but S&P 500 Futures print mild losses by the press time as traders remain skeptical ahead of China open and the Fed meeting.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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