This week we delve into the world’s largest asset class. Alarming economic data has sparked investor jitters, but imbalances have existed for a decade or more.
Over the past 15 years, China’s construction frenzy has reached historic proportions. The trigger point is elusive, akin to predicting an avalanche. Conditions are ripe for a seismic shift, this week we ask the big question: Why now?
Part of the answer lies in the developers. But the big names of Country Garden and Evergrande aren’t exceptions; they mirror the industry. China’s top developers grapple with four massive challenges.
Then we look at macro construction stats. Something’s off. The numbers just don’t add up.
Can infrastructure fill the gap? How much bigger can China grow that spending?
We also consider shadow banking issues, fading hopes of a consumer-led rescue and financial repression’s paradox.
This is China’s fourth attempt at breaking its property addiction—stakes are rising.
In this week’s podcast Nucleus Wealth Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr dig into the arguments and look at the evidence.
Agenda:
Can’t make it to the live series? Catch up on the content via Podcasts or our recorded Videos.
Samuel Kerr is a Senior Financial Adviser at the MacroBusiness Fund, which is powered by Nucleus Wealth.
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Samuel Kerr is an Authorised Representative of Nucleus Advice Pty Limited, Australian Financial Services Licensee 515796. And Nucleus Wealth is a Corporate Authorised Representative of Nucleus Advice Pty Ltd.