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Why Jim Cramer Doesn't Fear an Evergrande Market Contagion

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China's second-largest property developer, Evergrande, has been caught in a liquidity squeeze that could see it fail to meet bond obligations and head ever closer to a damaging bankruptcy and sale of hundreds of commercial properties. With over $310 billion in debt, the potential impact extends beyond Evergrande and even China with banks, suppliers, home-buyers and investors among those at risk.

China Evergrande shares hit a fresh eleven-year low in Hong Kong trading Monday to close at HK$2.28 each, extending their six-month slump to around 85%, TheStreet's Martin Baccardax reported. 

Looking particularly at what he views as an unwarranted impact on U.S. bank stocks, Jim Cramer explained why he doesn't fear a contagion effect from the Evergrande situation in the video above. 

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