CANBERRA, AAP – Scott Morrison has hosed down concerns the potential collapse of a Chinese construction giant could trigger an international financial crisis.
Evergrande – the world’s most indebted company – is teetering under eye-watering liabilities, stoking fears of wider economic fallout.
But Australia’s prime minister does not expect a similar impact to the global financial crisis.
“That’s not the advice I have at this point but the world is going through a very, very difficult economic time,” Mr Morrison told 3AW radio on Friday.
“That’s an important reminder of that.”
He hopes Evergrande can emerge from its debt woes and noted the United States, UK, Canada and Europe were bigger foreign investors than China.
“Like any major company investing in Australia we obviously want them to be viable – that’s good for jobs,” Mr Morrison said.
Evergrande is saddled with more than $US300 billion ($A412 billion) in total liabilities equivalent to two per cent of China’s gross domestic product, Reuters reports.
It’s in the throes of a liquidity crisis and is scrambling to raise funds to pay its many lenders and suppliers.