CNBC’s Jim Cramer said Monday he believes beleaguered Chinese property developer Evergrande does not present a major risk to the U.S. economy and financial system.
“Evergrande’s stock has been obliterated and that pain is spreading to the rest of the Chinese real estate industry, to the Chinese financial sector and to foreign banks with lots of China exposure,” the “Mad Money” host said.
“Evergrande is definitely a systemic risk for China,” Cramer added, “but I don’t think that will do much damage here.”
Cramer’s comments came after a steep sell-off in the U.S. equity market, with the Dow Jones Industrial Average dropping 614 points, or 1.8%, on Monday. The S&P 500 and tech-heavy Nasdaq sank 1.7% and 2.2%, respectively.
Concern about Evergrande defaulting on its sizable debts and the potential for financial contagion was one of the factors weighing on Wall Street on Monday. Despite Cramer not seeing broad U.S. economic risks, he said…