China property crisis: Financial collapse fears are overblown

As Chinese property giant Country Garden teeters on default and trust provider Zhongrong fails to repay products, some investors and economists say talk of a systemic financial collapse is an overreaction. Dominant commercial banks remain robust, while the government has tools to intervene even if direct bailouts are unlikely, they said. “I don’t think the property debt issue poses any systemic risk to the soundness of the overall financial system,” said Chen Dong, head of Asia …