{"id":85040,"date":"2021-09-20T11:51:01","date_gmt":"2021-09-20T15:51:01","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=85040"},"modified":"2021-09-20T11:51:01","modified_gmt":"2021-09-20T15:51:01","slug":"the-ultimate-contagion","status":"publish","type":"post","link":"http:\/\/stateofthenation.co\/?p=85040","title":{"rendered":"&#8220;THE ULTIMATE CONTAGION&#8221;"},"content":{"rendered":"<h1><strong>The Ultimate Contagion<\/strong>: China Sovereign<br \/>\nRisk Is Starting To Blow Out<\/h1>\n<p><!--more-->ZeroHedge.com<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/markets\/how-contagion-evergrandes-default-will-spread-rest-world\"><em><strong>&#8220;Something historic will happen this week&#8221;<\/strong><\/em><\/a>\u00a0was how we started to explain the process by which the collapse of Evergrande could\u00a0<strong>spread contagiously<\/strong>\u00a0across the world this week.<\/p>\n<p>One glance at global markets this morning suggests, at a minimum, that\u00a0<strong>risk is being de-grossed across everything<\/strong>\u00a0from European utilities to cryptos to US materials stocks.<\/p>\n<p>However, the biggest &#8211; and<strong>\u00a0ultimate-est &#8211; contagion<\/strong>\u00a0is that of China&#8217;s sovereign risk itself&#8230; and that is starting to blow out&#8230;<\/p>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\"><\/div>\n<\/aside>\n<\/div>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm13AC.jpg?itok=7mdahrCC\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/bfm13AC.jpg?itok=7mdahrCC\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/bfm13AC.jpg?itok=7mdahrCC\" alt=\"\" width=\"500\" height=\"257\" data-entity-type=\"file\" data-entity-uuid=\"aedf2106-e870-4712-8714-650f0560e585\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>This sudden surge in default risk on China&#8217;s sovereign debt is very significant in the context of China&#8217;s constant reassurance to the rest of the world that it is solid-as-a-rock (just as Larry fink, but don&#8217;t ask George Soros). However, we do note that China CDS spiked to around 90bps in March 2020 (as the COVID crisis hit) and around 150bps in early 2016 (accelerating after China devalued the yuan in late 2015).<\/p>\n<p>The question is, of course, where will this stop this time?\u00a0<strong>How much &#8216;risk&#8217; is China willing to take with its sovereign risk?<\/strong><\/p>\n<p>___<br \/>\n<a href=\"https:\/\/www.zerohedge.com\/markets\/ultimate-contagion-china-sovereign-risk-starting-blow-out\">https:\/\/www.zerohedge.com\/markets\/ultimate-contagion-china-sovereign-risk-starting-blow-out<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ultimate Contagion: China Sovereign Risk Is Starting To Blow Out<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-85040","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/85040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=85040"}],"version-history":[{"count":0,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/85040\/revisions"}],"wp:attachment":[{"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=85040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=85040"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=85040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}