Michael is joined by Stephen Bartholomeusz, Sydney Morning Herald Senior business columnist, regarding pundits arguing that the crisis within the Chinese property giant, China Evergrande doesn’t represent a systemic threat even though the actions being taken by China’s authorities suggest otherwise.

Mr Bartholomeusz writes, ‘While Evergrande’s woes might not represent a “Lehman” moment and presage a financial crisis – mainly because the absolute control the authorities have over their banking system means they can avert the kind of destructive freezing of inter-bank dealings that turned Lehman Bros’ collapse into a systemic crisis – the authorities aren’t sitting on their hands.’

‘The People’s Bank of China has injected more than $US70 billion ($96 billion) of liquidity into China’s financial system in just over a week, so it self-evidently sees Evergrande as some level of threat to systemic stability.’

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