EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 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.