Subscriber • Opinion

China can easily manage a property crash. That's a problem

Adam Triggs
By Adam Triggs
Updated April 6 2022 - 3:34am, first published October 11 2021 - 6:25pm
Residents cycle through Evergrande City plaza in Wuhan. Evergrande, China's largest developer, is facing a liquidity crisis. Picture: Getty Images

The threat that China's biggest property developer, Evergrande, might collapse sounds like a recipe for the next global financial crisis. All the ingredients are there: a crashing property market in a big economy, a property sector that represents a whopping 30 per cent of GDP, opaque loans through shadow banks and offshore bond markets, and a raft of property developers with an eye-watering $US2.8 trillion in debt.

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Adam Triggs

Adam Triggs

Columnist

Adam Triggs is a director within Accenture Strategy, a visiting fellow at the Crawford School at the Australian National University, a non-resident fellow at the Brookings Institution, and a fellow at Macquarie University's E61 institute. He writes fortnightly for ACM.

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