Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the current financial status of the Chinese property group Evergrande on (a) the world economy and (b) the United Kingdom economy.

The Government recognises that Evergrande’s financial situation, given the size of its outstanding debt, raises a number of global and domestic concerns. That is why we, alongside the UK’s independent financial authorities – the FCA, PRA and Bank of England are closely monitoring the situation.

Since 2008 there has been a concerted international effort to strengthen the global financial system. In the UK, banks now hold over three times more capital than they did at the time of the financial crisis. The Bank of England’s Financial Policy Committee judges that the UK banking sector is resilient to a wide range of economic scenarios, including a contraction in both China and Hong Kong's economic activity. This judgement of the UK banking sector is supported by the interim results of the 2021 solvency stress test.