Evergrande doom loop accelerates

Wednesday, 25 August 2021

Readers will know that China’s Evergrande group has become a central part of the story of the current economic slowdown in China.

Evergrande has been reeling all year as it struggles to meet the terms of China’s Three Red Lines policy aimed at deleveraging property developers to end, once and for all, the misallocation of capital into building empty apartments.

Evergrande has led a disastrous year of evaporating property developer equity on Chinese bourses:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.