• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Fitch says possible China Evergrande default may have broader effects

September 15, 2021 by David Barret Leave a Comment

September 15, 2021

HONG KONG (Reuters) – Rating agency Fitch said that numerous sectors could be exposed to heightened credit risk if China’s No.2 property developer Evergrande Group were to default, although the overall impact on the banking sector would be manageable.

“We believe a default would reinforce credit polarisation among homebuilders and could result in headwinds for some smaller banks,” Fitch said in a note https://bit.ly/3CbhKPt late on Tuesday.

Fitch downgraded China Evergrande Group to “CC” from “CCC+” on Sep. 7, indicating that it viewed a default of some kind as probable.

Evergrande has been scrambling to raise funds to pay its many lenders and suppliers, while regulators have warned that its $305 billion of liabilities could spark broader risks to the country’s financial system if not stabilised.

Fitch said 572 billion yuan ($88.8 billion) of Evergrande’s borrowings were held by banks and other financial institutions, but banks may also have indirect exposure to the developer’s suppliers, who are owed 667 billion yuan for goods and services.

“Smaller banks with higher exposure to Evergrande or to other vulnerable developers could face significant increases in non-performing loans (NPLs), depending on how any credit event involving Evergrande develops,” Fitch said.

But the agency added a recent People’s Bank of China sensitivity test showed the average capital adequacy ratio of the 4,000 banks in the country would only drop modestly if the NPL ratio for property-development loans were to rise by 15 basis points.

Fitch also said the risk of significant pressure on house prices in the event of a default would be low, and it expected the government would act to protect households’ interests to ensure home deliveries.

($1 = 6.4426 Chinese yuan renminbi)

(Reporting by Kanishka Singh in Bengaluru and Clare Jim in Hong Kong; Editing by Christian Schmollinger and Stephen Coates)

Source Link Fitch says possible China Evergrande default may have broader effects

David Barret
David Barret

Related posts:

  1. European shares turn positive as easing U.S. inflation data offsets luxury drag
  2. Tennis – Raducanu hits Met Gala red carpet in New York victory lap
  3. Apple updates iPads for work-from-home as new 5G iPhones expected
  4. Mexico may consider southern states for semiconductor production

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Longest Woolly Rhino Horn Ever Recovered Just Popped Out Of The Siberian Permafrost
  • Deer Can Learn Commands Like “Come”, But The Most Restless Ones In Class Take Longer To Learn
  • Is This Evidence Of The “Oldest Human Habit”? A New Study Has Different Ideas
  • Winds On Mars Are Faster Than Thought, Analysis Of 1,039 Dust Devils Shows
  • 400,000-Year-Old Fossil Shows Butchering Elephants Helped Early Humans To Supersize Their Tools
  • Ignore The Nonsense: Here Are The Real Images Of Interstellar Object 3I/ATLAS
  • This Rare Spider Is Half-Female, Half-Male Split Down The Middle – Oh, And A New Species
  • Comet 3I/ATLAS Caught On Camera From Mars Orbit: “This Was A Challenge”
  • JWST Captures Best Image Yet Of A Supergiant Star Before It Went Supernova
  • Isaac Newton’s “Apocalypse Calculations” Predicted A World-Changing Event In 2060
  • 2024-25 Saw The Most US Kids Dying From Flu Since The Swine Flu Pandemic
  • Technology, Tactics, Or Just Toughing It Out: How Exactly Did Neanderthals Take Down Mammoths, Anyway?
  • Nobel Prize In Chemistry Awarded For New Material Breakthrough
  • Interstellar Object 3I/ATLAS May Be A 10-Billion-Year-Old Time Capsule From An Earlier Age Of The Universe
  • Restless Leg Syndrome Might Increase Someone’s Risk Of Parkinson’s Disease
  • Behold! The World’s First Butt-Drag Fossil, Committed By A Rock Hyrax 126,000 Years Ago
  • Norovirus Is Rife On US Cruise Ships – 2025 Hits 18-Year Outbreak High
  • New Species Of Tiny Glowing Lanternshark And Ghost-Like Crab Discovered In Deep Sea
  • Hairy Frog: The Wolverine Frog That Breaks Its Bones To Make Claws When Threatened
  • Move Over, Footballfish – This Deep-Sea Freak Might Just Be The Most Cursed Creature In The Ocean
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version