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Global Traders Given Evergrande Reprieve as PBOC Adds Liquidity

  • CSI 300 fell as much as 1.9% but quickly pared losses
  • Investor sentiment buoyed by Evergrande coupon plan, PBOC cash
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Is the Evergrande Crisis a Contagion Risk?
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Global markets were offered a reprieve from Evergrande contagion fears on Wednesday as China’s central bank boosted liquidity and investors mulled a vaguely-worded statement from the troubled developer about an interest payment. 

The CSI 300 Index closed 0.7% lower, paring opening losses of as much as 1.9% after an Evergrande unit said a coupon payment had been resolved with bondholders in private negotiations. An injection of short-term cash by the People’s Bank of China lent support to fragile sentiment, helping steady risk assets beyond the world’s second-largest economy.