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Europe has limited direct exposure to Evergrande debt crisis

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LONDON — European Central Bank President Christine Lagarde believes Europe’s direct exposure to the embattled Chinese property company Evergrande would be “limited.”

It comes at a time when global stock markets are on high alert over Evergrande’s massive debt problems.

Investors fear Evergrande, which has seen its share price plummet in recent months amid a widespread crackdown by Beijing on highly leveraged developers, will default on a number of bond payments this week.

The company is deeply intertwined with China’s broader economy, and many financial institutions are exposed to the cash-strapped developer through direct loans and indirect holdings.

Market experts say a deepening liquidity crisis at Evergrande could send further ripples across the global economy, but they believe the issue will likely be contained by the Chinese government and is not expected to trigger imminent contagion.

Speaking to CNBC’s Annette Weisbach in Frankfurt, Germany on…

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