Yellen says economic slowdown in China would have “global consequences”

Evergrande’s collapse could slam Chinese banks

The Biden administration is closely watching the situation unfolding in China with the world’s most indebted property developer, according to Treasury Secretary Janet Yellen, who warned that its struggles to pay back billions in loans could have repercussions for the global economy.

Evergrande, China’s second largest property developer, is on the hook for more than $300 billion to creditors.

“Real estate is an important sector of the Chinese economy. It accounts for about 30% of demand,” Yellen told “Face the Nation” moderator Margaret Brennan in an exclusive interview. “And a slowdown in China, of course, would have global consequences. China’s economy is large, and if China’s economy were to slow down more than expected, it certainly could have consequences for many countries that are linked to China through trade.”

https://www.cbsnews.com/

China Evergrande crisis rocks markets across globe

Chinese and Hong Kong property groups bore the brunt of the sell-off

A wave of fear over Chinese economic growth swept through global markets on Monday as China Evergrande, the country’s most indebted property developer, teetered on the brink of default and investors worried about the consequences for its domestic peers and international commodity prices.

While Chinese and Hong Kong property groups bore the brunt of the sell-off, the impact was felt across European and U.S. stock markets. China Evergrande, whose liabilities amount to almost a third of a trillion dollars, is facing deadlines this week for payments to banks and bondholders.

In the U.S., the Dow Jones Industrial Average finished down 614 points, or 1.8% to close its worst day of trading since July. Caterpillar and Goldman Sachs were the benchmark’s biggest losers on a day when investors were also watching the outlook for the Federal Reserve’s cutbacks to monetary easing. The Dow fell 972 points at its low point before paring its losses toward the end of the session.

https://asia.nikkei.com/