A Ponzi scheme by any other name: the bursting of China’s property bubble

Summary

Martin Farrer writing in the Guardian, makes the following points:

• In 2021 Chinese property developer Evergrande Group had around $300bn in debts.
• Chinese house prices have dropped 1.3 % over the last year, and 29.1% of property loans are now considered bad debts.
• About 2m off-the-plan homes remain unfinished across China.
• In 2021, about 90% of homes were sold off the plan in China.
• Housing makes up about 20 % of the Chinese GDP.

References

Recent Runway Posts related to this topic:

• Why Evergrande Is Causing Panic in Stock Markets Everywhere -The Runway (airforce.gov.au)
• China's economy is cooling rapidly and Australia could feel the chill - The Runway (airforce.gov.au)

References from the Web:

• AUG 2022 China’s mortgage boycotts: Why hundreds of thousands of people are saying they won’t pay-Grid News
• AUG 2022 Evergrande has failed to deliver the debt restructuring plan it promised-CNN Business

Source Information:   

• Article Source: News, sport and opinion from the Guardian's Australia edition | The Guardian
• Media Check: Media Bias/Fact Check (mediabiasfactcheck.com)/ the Guardian
• RAAF RUNWAY: RATIONALE, GUIDELINES, LEARNING OUTCOMES, ETC | The Runway (airforce.gov.au)