Evergrande Crisis Is No Lehman Moment for Rising Chinese Markets
- China’s stocks, junk dollar bonds and yuan all advance
- Evegrande has failed to pay interest on bonds by deadline
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For all the warnings earlier this year that China Evergrande Group’s debt crisis would become the country’s Lehman moment, the developer’s landmark payment failure on Monday is barely registering in local financial markets.
The CSI 300 Index of stocks on Wednesday climbed to a six-week high, while Chinese junk dollar bonds rose 2 cents on the dollar, according to traders. The yuan strengthened to its highest level since May 2018. The risk-on mood continued even as bondholders of an Evergrande unit had yet to receive overdue interest payments.