How Can Evergrande’s Contagion Occur? 3

How will Evergrande's default affect other markets?

As the Evergrande contagion spreads via the Chinese banking system to the rest of the economy, the uncertainty will lead to a squeeze on USD funding across the board. Which is when, and how, the contagion has the potential to spread across the world, not forgetting that Chinese real estate developers would have at this point already defaulted on a good chunk of their Dollar borrowings.

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