What are the systemic risks of an Evergrande collapse?
The debacle is a test of Xi Jinping's commitment to reshaping the economy. China's financial authorities are "honing a new skill: the 'marketised default' — or an orderly market exit and well-managed restructuring for troubled companies." However, the volatility leading up to the Evergrande problem has left investors worried about the risks emanating from China. The Economist reveals how the crackdown on developer debt is one of several campaigns Xi Jinping uses to reshape the country, including repression on internet companies. How far will the turmoil spread?
From The Economist