Agency: Global markets are watching as the Chinese property giant Evergrande flirts with default and investors are worried that any collapse could ripple through the international financial system. Evergrande could be China’s “Lehman moment,” some market watchers say, referring to the collapse in 2008 of the Lehman Brothers investment bank.
But the broader threat for Beijing is that China’s growth is slowing, and the government may have to work harder to rekindle it.
The indicators: Retail sales were weaker than expected last month, led by slow car sales. Industrial production slackened. Investment in infrastructure, which Beijing has counted on for growth, is keeping the economy afloat right now. But it may not be sustainable for long.
Predictions: Bank of America on Tuesday lowered its forecast for China’s economic growth next year, to 5.3 percent from 6.2 percent.
The latest: Evergrande said that it had reached a deal with investors that gives it some breathing room, but it’s unclear what will happen on Thursday, when bond-interest payments are due.