Investors Grappling With Evergrande Fallout Weigh Risk of Wider Pain

Investors Grappling With Evergrande Fallout Weigh Risk of Wider Pain
The China Evergrande Centre building sign is seen in Hong Kong on Aug. 25, 2021. Tyrone Siu/Reuters
|Updated:

NEW YORK—Investors unnerved by the fallout from heavily indebted Chinese real estate company Evergrande were gauging the potential for a wider shakeout after a selloff hit stocks around the world.

For now, many U.S.-based investors believe there is little chance that the woes of Evergande, China’s second-largest property developer, could morph into a systemic crisis reminiscent of the 2008 collapse of Lehman Brothers.