More profound issues beyond the liquidity crisis of property developers include Chinese residents’ impaired confidence in the housing market and the slowing home sales dragging economic growth.
Members of German market information provider, DMSA Deutsche Markt Screening Agentur say Evergrande has defaulted; Analysts are split over whether the market is approaching stagflation or pointing to a healthy recovery; Low hedge fund returns and high management fees have seen pension fund allocations fall but CPPIB is keeping the faith; and more.
A recent survey from AsianInvestor’s Asset Owner Insights showed that China is among the top five destinations for Asian asset owners’ alternative investments in the next six to 12 months.
Evergrande's liquidity problems and the pressure on rivals Kaisa Group and Fantasia to make debt repayments point to how refinancing in the property development sector will only become more difficult.
Evergrande not the first debt debacle in China, but its $305 billion debt, if unpaid, will have a ripple effect on the economy; ESG-friendly crypto products becoming hot commodities for institutional investors; GIC sees no systemic risk in Evergrande crisis, but Soros Fund presses pause on China; Which assets will perform under stagflation?; Family offices taking ESG into their own hands as regulators play catch up; and more.