Struggling Chinese developer warns it could run out of money

By JOE McDONALD
AP Business Writer

BEIJING (AP) — A troubled Chinese developer struggling under $310 billion in debt has warned it may run out of money to “perform its financial obligations.” Regulators rushed to reassure investors that China’s financial markets can be protected from a possible impact. Evergrande Group’s struggle to comply with official pressure to reduce debt has fueled anxiety that a possible default might trigger a financial crisis. Economists say global markets are unlikely to be affected but that banks and bondholders might suffer losses because Beijing wants to avoid a bailout. The central bank and bank and securities regulators said China’s financial system is strong and that Beijing will keep lending markets functioning.