Chinese real estate bubble on the edge of bursting?
The news of the gigantic corporation Evergrande being on the verge of bankruptcy has been the headline of the week. Now it seems that they are trying everything to keep afloat. And it probably will, with some help from the PBOC.
But there is a bigger question here is: when and how is the Chinese real estate market going to pop? Because don’t be fooled here people, there hundreds, probably thousands of firms like Evergrande that are in trouble with real estate that doesn’t get sold. There are entire cities of immense skyscrapers that are completely empty, complete ghost towns.
And that is not something that just happened recently. This problem has been building up the last two decades and will eventually lead into an implosion of the real estate market. Will this bring the entire world economy into big trouble? Nobody really knows, it depends what the regulated state of China does with it. But it surely will take down the Chinese Renminbi with it. That is for sure!