IMF says China has tools to keep Evergrande’s problems from becoming systemic crisis

IMF chief economist Gita Gopinath told Reuters that the real estate sector was a large part of China’s economy, and that China Evergrande’s potential default could have implications for China’s economic activity and financial stability.

“We are following developments in China very closely,” Gopinath said, underlining the need for regulatory reforms to address the heavily leveraged asset sector. “We still believe that China has the tools and policy space to prevent this from turning into a systemic crisis.”

This story has been published without modification in text from a wire agency feed. Only the title has been changed.