The plight of the heavily indebted Chinese property company Evergrande has sparked fears of contagion that could damage economic growth in China, the world’s second-biggest economy, then spill over into the supply chain and wreak havoc on global growth. There is a general perception that the Chinese government will intervene in some way to rescue Evergrande, despite its debts of $300 billion (€256 billion) and that Evergrande, unlike Lehman Brothers in the global financial crisis in 2008, is too big to fail. The main reason the ruling Communist Party will intervene to support Evergrande is to preserve the stability it needs to maintain …
