Lessons from Evergrande in China

$300 billion in debt 300 million poor still exist in China 30% of China economy is real-estate 70% of Chinese savings is in real-estate Gini coefficient U.S. 41.1 China 38 Property 1.4 million properties in       suspended construction and or not started Ponzi scheme 90 million empty properties.       Prices should fall People who bought properties       are not in the same cities as where the properties were built 300 million poor not able to       pay the rent How to protect investors and homeowners. Political dimension Stay in power by improving       economics Can't print money without       consequences- not world currencies Public not OK with house       prices falling 20% drop already Protests in China want help from the government Turn into a national company? Forced restructuring Bondholders overseas Hong Kong 30 days before in default Foreign exposure Indicative of general China growth slowdown Power cuts around china No immigration Limited minority involvement in the economy Slow down from demographics Vietnam picking up China manufacturing South China sea tolerated because they are the growth engine