MNI BRIEF: Little Evergrande Impact On Liquidity: MNI Survey

The fallout from Evergrande has had little impact on short-term liquidity conditions across China's interbank market, but there is certainly a continued degree of uncertainty across the wider financial markets, respondents to MNI's Liquidity Conditions survey said.

One Shanghai-based trader noted the tighter financing conditions faced by real estate companies, which could trigger a round of defaults in the sector – which could then roll out into other sectors.

China Evergrande Debts has attracted global financial market attention in recent month, as more financial risk concerns arising, MNI added a special question of "Whether the Evergrande case has caused big influence on short term liquidity market" in September's survey. Another trader at a big four bank said the authorities handling of risk events in recent years, including Baoshang and Yongmei would help them deal with any Evergrande fall out.