- the source for market opinions


March 24, 2022 | Shifting Global Foundations: China’s Property Sink Hole

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( 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:

China’s credit-fuelled property boom was responsible for an estimated third of its economic growth over the last decade. It was also a significant driver of commodity demand, economic momentum and property market inflows globally. Its bust has contagion implications globally too.

The rapid expansion of China’s property sector was powered by a great migration from the farms to the cities – and built on cheap credit. The FT tells the story of Evergrande, the most indebted property developer in the world, which now stands on the brink of collapse. It’s a story that changes the outlook for China’s position as the locomotive of global economic growth. But is this China’s Lehman Brothers moment? Read more at  Here is a direct video link.

Evergrande is a canary in the broader financial coal mine, see Evergrande’s hidden debt sinkhole keeps growing:

The Evergrande saga has gone on for months, but investors are still none the wiser on how much value, if any, the company still has. And worryingly, several other important developers may have similar problems—if not quite as large. China’s real estate debt woes are far from over.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

March 24th, 2022

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.