This report gives a good overview of the global interconnections in our highly levered financial markets and economies. Deflation in the global property sector is needed. It will be painful but also helpful longer-term in redirecting capital from realty speculation to more productive investment.
Real Vision’s Roger Hirst uses Refinitiv’s best-in-class data to look at issues surrounding China Evergrande, a leveraged conglomerate that includes property development and banking amongst its operations. Expectations of a default have been running high, but its issues……… and the policy response…… go deep into the transition that China is undertaking. This looks more like a controlled explosion, rather than a contagion event, but the repercussions for global investors will be widespread. Here is a direct video report.
Also See: Evergrande debt crisis is financial stress test no one wanted.
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