StanChart CEO sees no Lehman moment for China
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[SINGAPORE] Beijing won't allow the turbulence surrounding China Evergrande Group to turn into a systemic crisis, the chief executive officer of Standard Chartered said, adding that the Asia-focused lender has no "concerning exposures to the property sector".
"This idea that this was something of a Lehman moment for China: I don't think China's frankly that dumb," Bill Winters said in an interview with Bloomberg Television on Tuesday.
Meanwhile, the International Monetary Fund said China faces tough trade-offs in dealing with the fallout from Evergrande's financial troubles, given the balance between cutting leverage and preventing risk.
More than 24 hours have passed without any clarity about whether the embattled developer has delivered interest payments due Oct 11 for 3 of its dollar bonds. There is a 30-day grace period before any missed payment would constitute a default.
Evergrande's next test of investor confidence will be on Oct 19, when 121.8 million yuan (S$25.6 million) worth of coupons come due for a 5.8 per cent domestic bond. It then has to deliver interest payments for 2 dollar bonds on Nov 6.
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