China Property Stress Spurs Fed Warning as Bond Losses Widen
- Concern is growing over size of hidden real estate debts
- Goldman Asset bucks trend by buying Chinese developer bonds
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Just weeks ago, Wall Street analysts and central bankers were quick to assure investors that a collapse by China Evergrande Group wouldn’t be a Lehman moment. Regulators in Beijing said that the crisis would be “contained.”
Now that a bond selloff has spread to China’s entire real estate sector and beyond, concern is growing about the potential risk to the global financial system.