The China RE thing is “old” news. That big company already defaulted weeks ago. Weeks in this market is old.
But the actual impact of those missing interest payments are flowing the markets. EG fails to pay A. A was using that income to fund its project with B. B had leveraged that 10x in the US stock market.
EG —> A —-> B.
When that flow stops the leverage unwinds. It takes a while. But it’s coming.