Australia's most powerful bankers have revealed they are worried about the possible collapse of Chinese property giant Evergrande and Xi Jinping's Communist policies aimed at the rich.
The Reserve Bank of Australia in October left the cash rate on hold at a record-low of 0.1 per cent but board members were preoccupied with the future of China's second biggest apartment developer.
The minutes of their meeting a fortnight ago have been released, highlighting concerns about a financial catastrophe in China, Australia's biggest export market.
With Evergrande now owing $400billion, the Reserve Bank is worried its debt problems could contaminate China's property sector.
Australia's most powerful bankers have revealed they are worried about the possible collapse of Chinese property giant Evergrande and Xi Jinping's Communist policies aimed at the rich (pictured is the Evergrande Centre in Shanghai)
People's Bank of China governor Yi Gang on Monday admitted Evergrande's problems 'casts a little bit of concern' in a virtual meeting of the Group of 30 but he was optimistic there would not be wider effects'
'While Evergrande is small relative to the financial system in China, members noted a financial stability risk from spill overs to other developers and financiers if the resolution of Evergrande's problems were to be disorderly,' it said.
People's Bank of China governor Yi Gang on Monday admitted Evergrande's problems 'casts a little bit of concern' in a virtual meeting of the Group of 30 but he was optimistic there would not be wider effects.
'Overall, we can contain the Evergrande risk,' he said.
Nonetheless, Reserve Bank of Australia governor Philip Lowe and his board members noted China's attempts to address financial system problems could potentially lower growth in China, the world's second biggest economy.
China's economy grew at an annual pace of 4.9 per cent in the September quarter, down sharply from 7.9 per cent in the June quarter, the National Bureau of Statistics revealed on Monday.
The three-month growth pace of 0.2 per cent was significantly weaker than
