First published: ft.com, 7/07/2014
Financial markets are having trouble pricing the implications
The Chinese property sector is in a recession. Market optimists insist it is going through an “adjustment” similar to previous property downturns.
A more sober view, however, is that because of unprecedented overbuilding, and leverage nurtured by the eruption of shadow banking, this downturn is both more serious and systemic. China is probably in the first stage of a denouement of the property- and construction investment-led growth model of the past 15 years. Financial markets are having trouble pricing the implications….“more:”
