Federal Reserve Warns of Stress in China’s Property Market

 Federal Reserve Warns of Stress in China’s Property Market

Turmoil in China’s real estate sector could threaten the United States, the Federal Reserve said in a report on Monday.

In its twice-yearly update on the American financial system, the U.S. central bank said it was concerned both with how high the levels debt had grown in China’s corporate sector and with how Beijing was tackling the debt.

The financial troubles of China Evergrande Group, the world’s most indebted developer with a $300 billion debt pile, has set off panic in global financial markets and at home. What initially emerged as concern over one heavily indebted company has spread to a number of other real estate companies. Those developers are showing their own signs of stress as they struggle under mountains of debt and a property market slowed by tightening government controls over borrowing.

The regulatory focus, the Fed said, “has the potential to stress some highly indebted corporations, especially in the real…

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