Special Report

September 21, 2021

Evergrande, the now notorious Chinese developer, will likely default on the interest payments for two of its bonds due later this week. This represents neither a  “Lehman moment” nor a “Volcker moment” for China’s financial system. It is potentially another deflationary shock for the Chinese economy, which will only accelerate the deployment of China’s policy reflation that is already underway.

How could the Evergrande saga play out? What impact could this have on China’s financial stability? What role has the government played in China’s “housing bubble”? What investment strategy makes sense in this environment? Please read the report for our answers.