China Will Maintain Deflating Real Estate Bubble Despite Evergrande: Times

China will maintain the focus on deflating the real estate bubble and reducing risks, and won't change its pace of economic adjustment in order to quell the market, the Global Times said in an editorial. The state-owned tabloid responded to speculation that the widening debt crisis faced by Evergrande, the country's biggest developer, may push the Chinese economy into a "Lehmen Brothers" moment. Evergrande's fate remains uncertain as it has been trying to raise funds to resolve its liquidity crisis, the newspaper said. Evergrande's challenges were due to its high leverage and credit bubbles, a shared phenomenon among Chinese developers, said the newspaper. However, Evergrande's recent failure to pay overdue bills is a troubling sign for the entire property industry, which may spread contagion risks to upstream and downstream, said the newspaper.