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John Authers

China’s Evergrande Moment Is Looking More LTCM Than Minsky

The Chinese government's likely response implies a nasty and messy market, but not an all-out implosion.

The lights are on, but...

The lights are on, but...

Photographer: NOEL CELIS/AFP/Getty Images

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As the week starts, Hong Kong is gripped by the fast-developing crisis at real estate developer China Evergrande Group, which is on the brink of skipping payments due to banks. With mainland Chinese markets closed for a holiday, this has translated into a nasty selloff in Hong Kong, which has seen the Hang Seng Chinese Enterprises Index (often referred to as H-shares) touch its low from the pandemic shutdown last year: