Chinese property firm Evergrande has been all over the financial news in past weeks as its bonds were trashed.
The concern is, of course, contagion.
Fitch has weighed in, saying that Fitch a "credit event" for the firm would have a broader effect:
- a default would reinforce credit polarisation among homebuilders
- could result in headwinds for some smaller banks
Let's see how this pans out ... I'd suggest Chinese authorities would be quick to step in and prop up anything that needs propping up. The death of China has been greatly exaggerated many times.
My 2 cents (it was a dollar, but yeah, Evergrande and all that ;-) )
