China Faces a Reckoning With Evergrande Crisis. What Could Come Next.

3 weeks ago 17

Updated Sept. 24, 2021 7:15 p.m. ET / Original Sept. 24, 2021 12:57 p.m. ET

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China President Xi Jinping has made sweeping moves to rein successful immoderate of the country’s biggest companies.

Illustration by Robert Connolly; Xinhua News Agency / Getty Images

The indebtedness troubles of spot developer China Evergrande Group couldn’t travel astatine a worse clip for China’s already slowing economy. Global markets, too, whitethorn consciousness the ripples successful the adjacent word from a China-centric crisis. But determination could beryllium a metallic lining: If Evergrande’s travails get excessively painful, Chinese authorities could connection investors a reprieve with targeted stimulus and perchance an easing of immoderate caller concern restrictions.

China has been trying for years to grapple with the aggressive, debt-laden enlargement of its property...

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