Today, major banks UBS and Barclays have finally acknowledged that the Evergrande solvency issue is only a small part of the economic crisis in China.
We reported earlier this month that the economic crisis is coming to China.
Today, big banks have finally come on board. Market Insider reports:
The ongoing crisis at real estate developer Evergrande is affecting the broader Chinese economy, according to UBS and Barclays, who have warned that growth will be much lower than previously expected in 2021.
The two banks say Evergrande’s threatening standard has hurt the broader Chinese real estate sector – which is one of the most important sources of growth in the economy. They also said that China’s power outage would be an obstacle.
‘Both the country and the foreign bond markets remain effectively closed [property] developers while sales, the main source of cash flow, are declining, ”UBS analysts, led by China’s chief economist Tao Wang, said on Monday.
Analysts at Barclays, including China’s chief economist Jian Chang, said there had been a rapid decline in sentiment in the domestic market due to Evergrande’s financial problems [have] spread to more developers In October. “
We have been warning about the investment crisis in China for years. We reported on President Trump’s months.
We learned last week that current trends are already worse than Goldman Sachs’ worst case scenario.