You are here: Home » International » News » Others
Business Standard

China's real estate problems could hurt global markets, warns US Fed

The Fed pointed specifically to the crisis at real estate developer Evergrande

Evergrande | China | US Fed

IANS  |  New Delhi 

Residential buildings under construction are seen at Evergrande Cultural Tourism City, a project developed by China Evergrande Group, in Suzhou's Taicang, Jiangsu province (Photo: Reuters)

Troubles in China's vast real estate sector could spill over to the global economy, including the United States, according to the US Federal Reserve, the CNN reported.

The US central bank has warned that China's ongoing property woes could elevate "financial stresses in China, [which] could further strain global financial markets and negatively affect the United States".

In its biannual report on financial stability, the Fed pointed specifically to the crisis at Evergrande, China's most indebted developer. The company has sparked fears of contagion since September upon warning that it could default on its debts of more than $300 billion. Several other real estate developers are also in trouble, the report added.

Though "Chinese authorities have introduced measures to cool down property markets", there is a risk that "financial vulnerabilities will continue to rise", the Fed noted, CNN reported.

The central bank warned that given the size of China's economy and financial system, and its global ties, "financial stresses in could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States", it added.

is one of China's largest real estate developers. The company is part of the Global 500, meaning that it's also one of the world's biggest businesses by revenue.

Stocks in Hong Kong, New York and other major markets have previously been swayed by fears of contagion from and a slowdown in Chinese growth.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 09 2021. 20:04 IST