Chinese property giant Evergrande’s potential collapse is more likely to provide investors with opportunities than it is to create a significant headwind, according to several investment professionals, who believe China’s government will salvage the firm before it sparks a credit crunch.
China's Evergrande Group is the second-largest property developer in China and is currently on the brink of collapse, with 2.3trn RMB (£260bn) in debt that the company seems unable to pay back. On 24 September, Evergrande missed offshore bond payments of $83.5m (£61m), and analysts believe it is unlikely to raise enough cash in 30 days to avoid defaulting on the debt. However, despite fears of Evergrande's collapse causing chaos in the Chinese economy, it is likely that the Chinese Government will "not allow the Evergrande situation to develop into a Lehman-like scenario", according to S...
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