Chinese Shadow Banking Contagion

Citizen Watch Report ^ | Chris Black

[davikkm]

Last summer, I wrote a brief article about how China’s property sector is, structurally, a bubble.

And as with all bubbles, policymakers are equipped with a toolkit limited to delaying, mitigating, or perhaps even changing (genco.substack.com/p/the-great-financial-reset-of-2009) the inevitable “burst”.

And while Beijing has done a mostly admirable job over the past decade of delaying the debt crisis, a sort-of countdown to D-day has begun.

[Chad_the_Impaler]

An audit revealed that Zhongzhi Enterprise Group has assets of $38 billion, not the $138 billion ($1 trillion yuon) previously reported by Bloomberg. It has liabilities of $64 billion.