EVENTS:   Acceleration in the Energy Transition - David Scott/CHA-AM Advisors - 12 May 26     ROADSHOWS: Consumer Research & Industry Trends focused on US Retail, E-Tail, and Consumer Products Companies - Scott Mushkin /R5 Capital   •   London   07 - 08 May 26       US Equity Short Research & Strategy - Zach Shannon /Corto Capital Advisors   •   New York   18 - 19 May 26       Investing in Constraint: Governance, Scarcity, and the Next Phase of the Energy Transition - François Boutin-Dufresne & Félix-A. Boudreault & Lenka Martinek /Sustainable Market Strategies   •   London   18 - 19 May 26      

China - The Bigger Short

Andrew Hunt Economics

Wed 26 Oct 2022 - 15:00 BST

Topics

  • China's economy is well known to be one that is debt reliant, but it has recently suffered four potentially fatal shocks:
    • A "Death Cross" between the rate of growth of GDP versus interest expenses.
    • Debtor income discontinuities caused by zero COVID policies.
    • Rising interest costs and rollover difficulties vis-à-vis the banks' $3 trillion of foreign currency liabilities.
    • The impact of a busted Ponzi Scheme within the property developers that may cost China's banks the equivalent of 40% of GDP in loan losses.