Michael is joined by Stephen Bartholomeusz, Sydney Morning Herald Senior business columnist, regarding pundits arguing that the crisis within the Chinese property giant, China Evergrande doesn’t represent a systemic threat even though the actions being taken by China’s authorities suggest otherwise.

 

Mr Bartholomeusz writes, ‘While Evergrande’s woes might not represent a “Lehman” moment and presage a financial crisis – mainly because the absolute control the authorities have over their banking system means they can avert the kind of destructive freezing of inter-bank dealings that turned Lehman Bros’ collapse into a systemic crisis – the authorities aren’t sitting on their hands.’

 

‘The People’s Bank of China has injected more than $US70 billion ($96 billion) of liquidity into China’s financial system in just over a week, so it self-evidently sees Evergrande as some level of threat to systemic stability.’

Michael is joined by Stephen&nbsp;Bartholomeusz,&nbsp;Sydney Morning Herald Senior business columnist, regarding pundits arguing that the crisis within the Chinese property giant, China Evergrande doesn&rsquo;t represent a systemic threat even though the actions being taken by China&rsquo;s authorities suggest otherwise.
&nbsp;
Mr Bartholomeusz writes, &lsquo;While Evergrande&rsquo;s woes might not represent a &ldquo;Lehman&rdquo; moment and presage a financial crisis &ndash; mainly because the absolute control the authorities have over their banking system means they can avert the kind of destructive freezing of inter-bank dealings that turned Lehman Bros&rsquo; collapse into a systemic crisis &ndash; the authorities aren&rsquo;t sitting on their hands.&rsquo;
&nbsp;
&lsquo;The People&rsquo;s Bank of China has injected more than $US70 billion ($96 billion) of liquidity into China&rsquo;s financial system in just over a week, so it self-evidently sees Evergrande as some level of threat to systemic stability.&rsquo;

Australia Overnight with Mike Jeffreys, 12am – 4am weekdays.

Wake Up Australia, 4am - 9:30am weekdays.

Australia Overnight with Mike Jeffreys, 12am – 4am weekdays.
Wake Up Australia, 4am - 9:30am weekdays.

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