The biggest fear investors should have with the crisis gripping overly indebted Chinese real estate developer Evergrande is global contagion, argues Goldman Sachs.
“The danger is precisely the contagion effect, should a default occur without clear ‘ring-fencing’ of spillovers to other parts of the real economy or financial sector. Events over the past week suggest risks of inching toward that direction,” said Goldman Sachs Hui Shan in a research note on Monday.
Shan points out that he is…
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