Evergrande: How far will Xi go with his crackdown on real estate sector

The selloff on Monday left few risky assets untouched. Hong Kong's Hang Seng Index tumbled more than 3%, led by real estate companies.

How far will President Xi Jinping go with his crackdown on China’s real estate sector?

The question has suddenly become an urgent one on trading desks around the world. After months of treating the crisis at indebted developer China Evergrande Group as largely contained, investors on Monday rushed to price in the risk that Xi will miscalculate as he tries to curb China’s property-market excesses without derailing the economy.

The resulting market turbulence may add pressure on Chinese leaders to tap the brakes on policy tightening, or at least take steps to limit the fallout. Goldman Sachs Group Inc. analysts called for