The global economy could feel the effects of China’s Evergrande crisis. Here’s what investors should know

The global economy could feel the effects of China’s Evergrande crisis. Here’s what investors should know

A liquidity crisis at a large Chinese property developer has shaken global markets, and strategists say it could send ripples across the global economy. But they also say the issue will likely be contained by the Chinese government before it wreaks damage in the banking system and it is not expected to lead to a broader global financial contagion. The critical question for investors is how and when do leaders in Beijing handle the situation, and whether they launch a restructuring of as many market pros expect. Investors have worried that Beijing is likely to let the company fail, wounding stockholders and domestic bondholders. Evergrande faces a after it said last week it was facing unprecedented difficulties. "Everyone was expecting the government would have some kind of resolution given that Evergrande is a systemically important company," said Jimmy Chang, chief investment officer at Rockefeller Global Family Office. "It has $300 billion in outstanding debt. There is a contagion issue if China Evergrande is not resolved. I think it will end up having some deep-pocketed state-owned enterprises to take over." Market pros don't think that Evergrande could lead to the next financial crisis, but it could lead to more volatility. "The