Jay Clayton, Senior Policy Advisor and Of Counsel to Sullivan & Cromwell and the former Chairman of the Securities and Exchange Commission, appeared on CNBC’s “Squawk Box” to discuss the financial crisis facing China property developer Evergrande. He commented that it’s important to consider whether this is an isolated incident or an event that will have a systemic effect, creating price dislocation in the retail and residential real estate sectors that will reverberate through China’s economy. Jay noted that is the type of question the Chinese authorities likely are examining and, if necessary, taking action. He also noted that it’s important to pay close attention to the implications for non-Chinese investors, and whether they are treated the same as Chinese investors.
Click here to watch the full conversation.