China Faces a Reckoning With Evergrande Crisis. What Could Come Next.

The indebtedness troubles of spot developer China Evergrande Group couldn’t travel astatine a worse clip for China’s already slowing economy. Global markets, too, whitethorn consciousness the ripples successful the adjacent word from a China-centric crisis. But determination could beryllium a metallic lining: If Evergrande’s travails get excessively painful, Chinese authorities could connection investors a reprieve with targeted stimulus and perchance an easing of immoderate caller concern restrictions.

China has been trying for years to grapple with the aggressive, debt-laden enlargement of its property...