Empty Evergrande

With debts exceeding $300 billion, 2% of Chinese GDP, Evergrande’s likely Thursday bankruptcy won’t be pretty. But it isn’t a short-term Lehman moment. Chinese banks are in good shape and can absorb losses, and if some can’t, Beijing will bail them out. The government will also make whole condo buyers who are owed homes that are unbuilt/unfinished. As for foreign bondholders and lenders in China’s shadow banking system, good luck.