IS it because the CHINESE all have excessive high debt levels?

NEXT …

Does BEIJING have the resources to save Evergrande?

With the economy weighed down by debt and COVID-19 where will the cash come from?

PRIOR to COVID-19 in late 2019 China had incurred 7 X more debt than gross domestic product

WITH a $3 Trillion fall in market value of China’s most productive companies

-printing renminbi in the absence of real growth would lead to hyper-inflation

-too many Evergrandes

e.g. Sinic Holdings Group; its stock dropped 87%

.Guangzhou R & F Properties also facing serious difficulties

.Chinese banks are exposed

CHINA’s property sector is seizing up; home sales are falling quickly

IF Chinese leaders prevent a Lehman style crash by mobilizing state enterprises and banks China could face a decade or more of stagnation!

.debt to GDP ratio soared by nearly 45% in 5 years

.Evergrande’s debt amounts to 3% of China’s annual GDP

WHY would China face a decade or more of stagnation?

Because the CHINESE all have excessive high debt levels!

WHAT does this mean for the U.S. and AUSTRALIA?

READ MORE!

‘EVERGRANDE’S Debt Crisis: Time to Ditch China’

https://thehill.com/opinion/finance/573397-evergrandes-debt-crisis-time-to-ditch-china