Why the Evergrande rumours should not put you off emerging market debt

Caution pays – misconceptions do not

clock • 4 min read

When a note began circulating in late September that claimed to show Chinese property developer Evergrande begging the local government in Guangdong for help in averting a cash crunch, it seemed to confirm many of the worst fears about Chinese corporate debt: low governance standards, excessive amounts of leverage and a lack of transparency make this asset class more of a gamble than an investment.

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