PBOC’s Yi: China can ‘contain’ the risk from Evergrande

The Chinese authorities are capable of containing the risks that could emerge out of the troubled China Evergrande Group on the country’s financial system, the People’s Bank of China (PBOC) Governor Yi Gang said at a virtual meeting of the Group of 30 on Sunday.

Key quotes

The property developer’s trouble “casts a little bit of concern.”

“Overall, we can contain the Evergrande risk.”

Evergrande’s liabilities were spread across “hundreds” of entities in the financial system so that there is “not much concentration.”

“The rights and interests of creditors and shareholders will be fully respected in strict accordance with the law. And also the law has clearly indicated the seniority of those liabilities.”

“The growth momentum has moderated somewhat.”

“Economic growth has been slowed down a little, but the trajectory of the economic recovery remains unchanged.” 

“The Chinese economy is doing well in general, but we still face some challenges.”

“We are keeping a close eye on all these problems.”

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