China’s financial innovation in response to evergrande’s bankruptcy

Abstract

At certain specific times, financial institutions will adopt new processes and establish new channels to solve problems. Evergrande Group filed for bankruptcy protection in New York, USA. For the Chinese financial market, this is exactly the moment that requires financial innovation. In this situation, the relevant departments of the Chinese government adopted the method of issuing special bills by wholly-owned state-owned enterprises based on the principle of "not breaking down the trust of banks and not breaking down insurance licenses" to basically eliminate systemic financial risks.