More and more economic reports that China’s “zero tolerance” covid response policy is causing a major drag on business activity in China. In addition, the bursting of the property bubble several months ago, which accounts for about 30% of China’s Gross Domestic Product (GDP) is exposing the fact, that a great deal of China’s growth is built on the back of a debt buildup, which cannot be repaid. China is taking steps to pretty much tell foreign lenders, their investments to property companies, like Evergrande, are not going to be repaid for many, many years, if ever.
Which European and American Banks and Pension Funds are now holding these toxic assets? That may be the $ 64 Trillion Dollar question.
Tuesday, May 24, 2022