China’s property black hole sucks in the CCP


Caixin has a good report on the mounting panic in Beijing as the property black hole expands.

The downward spiral of China’s ailing property sector shows no sign of abating despite the government’s rollout of a seemingly endless series of supportive but as yet ineffective measures, with the crisis stretching for over three years.

Now, some of the industry’s top performers such as Gemdale Corp. and China Vanke Co. Ltd., who thus far had been weathering the storm, are teetering under massive maturing debts, spooking investors and sending the value of the latter’s dollar bonds plunging more than 30% last month.

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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.