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Evergrande is hostage to Beijing's property pain threshold

China wants to signal it is serious about cooling sector but not at the cost of an economic engine

Any annihilation of Evergrande would impair the whole sector and set back a post-pandemic recovery in economic growth.   © Reuters

When asset bubbles burst, they usually follow a familiar script. Speculators go too far and prices get giddy before financial gravity is restored with a "pop". Only then do governments consider intervening to protect the public interest or save a company that is too big to fail.

But the deepening crisis surrounding China's Evergrande, the most indebted property company in the world, is following a different narrative.

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