$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