Evergrande’s looming default is spooking markets, but three top analysts say this isn’t China’s ‘Lehman Brothers moment’

Evergrande’s looming default is spooking markets, but three top analysts say this isn’t China’s ‘Lehman Brothers moment’

The fate of Evergrande, a highly indebted Chinese property developer, has become a around the world. Evergrande is China's second-biggest property developer and has huge debts, with around $300 billion of liabilities to banks and bondholders. It warned earlier in September that it could , prompting some investors to panic-sell its bonds. On Monday, Dow futures plunged more than 500 points and Hong Kong's stock index tumbled 3.3%, as investors braced for a big week in which Evergrande could default. It has a $83.5 million bond interest payment due Thursday. If it does default, the fallout could hit Chinese suppliers as well as foreign investors including BlackRock and Allianz. Some have suggested that if Evergrande collapses, it could be China's Lehman Brothers moment, referring to the role played by the demise of the US investment bank in the 2008 financial crisis. Yet many market experts have said that Evergrande is too big to fail and is likely to be rescued by the Chinese government, limiting the economic impact on China and the world. Bond market expert , he thinks it will act to limit any impact on the financial system. "The reality is (Evergrande) is too big to fail, and