China’s Evergrande shakeout is not getting better. Dollar bond spreads for developers did narrow slightly last week but remain at paralysis levels:
That said, incremental easing is still underway at the ground level:
It needs to be. Property sales are still terrible:
Land sales remain apocalyptic with developer balance sheets still in outright survival mode:
However, there has been some acceleration in local government infrastructure bonds perhaps indicating a little stimulus traction as last:
It is still below last year and these are only dedicated infrastructure bonds. Wider local government balance sheet funding for projects will still be heavily suppressed by weak land sales.
The Chinese construction adjustment remains in full swing.
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.
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