RESOLVING Chinese property developer Evergrande Group's struggle with $300bn (£220bn) in liabilities has been fairly protracted but did not threaten financial stability in Britain, Bank of England governor Andrew Bailey said yesterday.

China was clearly trying to reduce its reliance on the property sector for growth and the BoE was closely watching events at Evergrande, Bailey told parliament's Treasury Committee.

"We are seeing contagion within China but it seems to be being kept under control. They are managing it by effectively preferring onshore to offshore creditors, we do have to note. But obviously it is a concern to us,"

Bailey said.

Two banks in Britain, Standard Chartered and HSBC, have large exposures to east Asia.

BoE Deputy Governor Jon Cunliffe said Britain's banks were resilient, holding enough capital to withstand another Covid-19 like shock to the economy without requiring government help.

Reuters

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