[seanmcdirmid]

> Interesting about this is that Evergrande is defaulting only on foreign held debt. Not internal debt after a ccp mandate.

This will put a huge hamper on China's FDI: if foreign investors are given a worse place in line in case of insolvency, they will either shy away from investing at all or demand higher returns for the extra risk.

[urthor]

Chinese FDI inflows and outflows are actually almost equivalent in USD terms. Furthermore, China is well known for placing huge restrictions on capital outflow in its economy.

I think it's safe to say that even if every last dollar of FDI dried up, China would be more than fine with its domestic capital supply.

Furthermore, the identities of the big FDI investors are dominated by physical manufacturers investing in onshore operations. Not so much liquid global securities trading.