China property shares firm after PBOC says Evergrande woes manageable

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Top developers Country Garden and Sunac China jumped over 4% and 8%, respectively, in early trading but China Vanke declined 2.6%.

The People’s Bank of China Governor Yi Gang said on Sunday China’s economy faces challenges such as default risks for certain firms due to “mismanagement”, and that authorities are keeping a close eye “so they do not become systematic risks”.

On Friday, another PBOC official said the spillover effect of China Evergrande Group’s debt problems on the banking system were controllable and individual financial institutions’ risk exposures were not big.

Global financial markets have been rocked by contagion fear over a liquidity crisis at China Evergrande Group which has over $300 billion in liabilities.

The broader market eased 0.5%.

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