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September 23, 2021 | China’s ‘Controlled’ Credit Explosion

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

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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September 23rd, 2021

Posted In: Juggling Dynamite

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