Stan Chart says Evergrande is trouble in just one sector of the Chinese economy - otherwise China still very strong
This piece from Reuters overnight on the view at Standard Chartered:
Comments from the bank's Chief Financial officer Andy Halford at banking conference on Thursday:
- "Even if one sector of the Chinese economy is a little under the cosh at the moment, the generality of the growth in the Chinese economy is still very strong when compared with most other parts of the world, and as we look forward it does not dent our enthusiasm for the country"
Stan Chart has no direct exposure to Evergrande and "negligible" indirect exposure
- has around $6b of exposure to real estate in Hong Kong
- $1.25 bn in China
- out of a global real estate portfolio of some $19 billion
- "We need to be careful that we don't overreact, in this instance we don't have any significant exposure, the overall sectoral exposure is very modest and we're much, much less concerned than the initial market reaction"