EFEShanghai, China

The Chinese authorities “have the tools to step in” if the crisis triggered by the mammoth indebtedness of real estate giant Evergrande worsened, the International Monetary Fund (IMF) has said in a report, warning of “a risk that broader financial stress may emerge.”

The October update of the Global Financial Stability Report, published on Tuesday, pointed out the coronavirus pandemic impact so far has been limited to financially weak property developers and lower-rated firms.

"I think the Chinese authorities have fiscal power and space, as well as legal and institutional means, to tackle the problem," Tobias Adrian, director of the IMF Capital and Monetary Markets Department, said in a virtual press conference. EFE