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How to tell if the Evergrande crisis is spilling beyond China

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The picture shows the Evergrande Automotive R&D Institute Headquarters of China Evergrande Group in Shanghai, China September 24, 2021. REUTERS/Aly Song

NEW YORK, Sept 24 (Reuters) – Worries surrounding debt-strapped property developer China Evergrande (3333.HK) have put investors on guard for evidence that the crisis may be spilling over into broader markets.

Evergrande, once China’s top-selling property developer, owes $305 billion, has run short of cash, and investors are worried a collapse could pose systemic risks to China’s financial system and reverberate around the world. read more

So far, there have been few signs of stress in money and credit markets, as well as other areas that would signal that the crisis was spreading beyond China.

“The linkage of Evergrande’s debt to other global financial actors is modest, despite the size of it,” said Stan Shipley, fixed income strategist, at Evercore ISI in New York.

“As a result the risk of contagion is…

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