Xi Must Judge Evergrande’s Risk to His Party

As President Xi Jinping looks to bring “common prosperity” to China, bailing out a billionaire isn’t a great look.

Yet allowing a default at China Evergrande Group, owned by Hui Ka Yan, is also risky: The world’s most indebted property developer has assets equivalent to 2% of China’s gross domestic product. A collapse would hurt millions of homeowners, company employees and retail investors.