PBoC: Evergrande crisis spillover risks controllable

EPA-EFE/JEROME FAVRE

The risk of a spillover of the debt crisis in Evergrande Group to the Chinese financial sector is "controllable," People's Bank of China (PBoC) Financial Market Department Director Zou Lan said on Friday.

"Of the Evergrande Group's total liabilities, financial liabilities are less than one-third. Creditors are also relatively dispersed, and individual financial institutions have little risk exposure," the official stated at a press conference, according to Chinese media.

Evergrande's issue is an isolated phenomenon in the Chinese real estate industry, according to Zou, who added that most companies from the sector are operating steadily and have good financial indicators and that the industry is generally healthy.

Baha Breaking News (BBN) / MS