Why the Evergrande rumours should not put you off emerging market debt
Caution pays – misconceptions do not

Dimitry Griko of EG Capital Advisors
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.
To some extent, this view is understandable when looking at a company such as Evergrande. Real estate represents a significant portion of the Chinese corporate bond market and as the largest property developer...
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