Fitch says possible China Evergrande default may have broader effects

Rating agency Fitch said that numerous sectors could be exposed to heightened credit risk if Chinese property developer Evergrande were to default. "We believe a default would reinforce credit polarisation among homebuilders and could result in headwinds for some smaller banks, although we believe the overall impact on the banking sector would be manageable", Fitch said in a note https://bit.ly/3CbhKPt late on Tuesday.

Fitch downgraded China Evergrande Group to "CC" from "CCC+" on Sep. 7, indicating that it viewed a default of some kind as probable.