‘China’s financial system could collapse’: What the Reserve Bank’s Evergrande bombshell means for Australia – ABC News

https://www.abc.net.au/news/2021-10-08/chinese-property-evergrande-collapse-damage-in-australia/100521564

… “If they act too quickly in addressing these

vulnerabilities, confidence in the implicit guarantees that underpin much of China’s financial system could collapse, which would lead to

financial distress,” the RBA says.

“In contrast, if they act too slowly, the probability of more severe financial stress in the future will increase.

“Continued bailouts also risk further entrenching perceptions of implicit guarantees.”…