Evergrande unlikely to trigger global crisis but must watch impact on China – ADB

In an interview on Tuesday, Masatsugu Asakawa, the President of Asian Development Bank (ADB) said that Evergrande is unlikely to trigger a global crisis but must watch out for its impact on China’s regional govt finances, household consumption.

Additional quotes

Must be vigilant to the risk of expected Fed policy normalization triggering an outflow of funds from emerging economies.

Once economies emerge from pandemic, they must shift away from expansionary fiscal policy.

China's banking system has sufficient buffers to absorb any shock from Evergrande.

PBOC is providing ample liquidity, authorities showing readiness to contain any spillover from Evergrande.

Evergrande may be facing liquidity strains but holds ample assets in its balance sheet.

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