(Bloomberg) -- Financial problems faced by institutions like China Evergrande Group are “controllable” and spillovers from the nation’s markets to the rest of the world are limited, a former central bank adviser said.

“Overseas investors don’t need to over-worry about China,” Yu Yongding, a former adviser for the People’s Bank of China, said at the annual Caixin summit Friday. 

China’s financial system is “still stable,” based on indicators like non-performing loans, he said. “Problems of financial institutions like Evergrande are controllable.”

A clampdown on excessive leverage in the property market and a debt crisis at Evergrande have spooked investors, resulting in a sell-off in dollar bonds recently. 

He also made the following comments at the summit:

• The biggest uncertainty for the global economy in 2022 will be the pandemic
• Global inflation will likely be transitory, instead of resulting in stagflation
• Another big uncertainty is geopolitics, and policies the Biden administration will adopt

©2021 Bloomberg L.P.