Chinese central banker says market can handle developer debt

KIFI

Published December 9, 2021 3:17 AM

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s central bank governor says financial markets can cope with the impact of a real estate developer that is struggling to avoid defaulting on $310 billion in debt. Yi Gang’s comments to a Hong Kong seminar added to indications Beijing has no plans to bail out Evergrande Group. Fears of a default have rattled financial markets, but economists say the ruling Communist Party wants to avoid sending the wrong signal at a time when it is trying to force companies to cut high debt burdens. Yi said Evergrande’s problems would be “properly handled” under market principles and law.

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