George Magnus warns of ‘domino effect’ of Chinese real estate debt By

© Reuters

By Laura Sánchez – China’s real estate debt problems are likely to lead to a period of stagnation affecting both the national and global economies, according to George Magnus, an economist and researcher at the University of Oxford.

The shares of the Chinese real estate giant Kaisa Group Holdings (HK 🙂 were suspended from trading last Friday following news of the non-payment of a wealth management product. This is a test of the domino effect of the crisis of Evergrande (HK 🙂 Group.

Of all the challenges facing the world’s second-largest economy in the coming years, Magnus argued that debt, related to real estate in particular, could be the most problematic.

“I think it is the debt that is really imminent, and I think we can see this in the real estate sector, which is a kind of metaphor for what is happening in the rest of the economy between local governments, state companies, etc., “Magnus said in statements to CNBC.

Magnus suggested that after at least two decades of expansion in the Chinese real estate market, due to the government’s willingness to intervene in this sector, it is possible that Beijing will see the danger of the domino effect to other sectors.

“I hope China tries to help the real estate sector this year and in 2022 before the November congress, but I think the market is facing years of stagnation, to be honest.”

Legal warning: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker