The IMF = International Monetary Fund has the risk of spreading the impact on the global capital markets if it leads to credit instability in the entire real estate industry over the Chinese real estate giant Evergrande Group, which is in trouble due to huge debt. I sounded a warning bell when there was.
In a report released on the 12th that examines the risks of the global financial system, the IMF addresses the issue of China's "Evergrande Group," which has a large amount of debt and is concerned about defaulting. I did.
In it, he said that the impact at this point is limited to other real estate companies in China with weak finances and low-rated companies.
However, if the problem leads to credit instability in the real estate industry as a whole, the loss of financial institutions, including non-banks called shadow banking, may increase, and the decline in housing prices will lead to sluggish consumption and the Chinese economy will be hit. There is a concern that it will be received.
It also warns that China's economic downturn and financial sector turmoil pose a risk of affecting global capital markets.
The IMF recommends to the Chinese government that it may take measures to curb the impact on the economy in the short term, but that if the support is too generous, future risks will increase. The framework should be strengthened in the long run.