Debts hanging over China are far more structural and the possible demise of property giant Evergrande is only a symptom of a much larger problem, says fintech expert Sara Hsu according to the Market Research Telecast
The Market Research Telecast:
For her part, Chinese financial technology expert Sara Hsu complaint at The Diplomat “structural failures in China’s financial system. “It indicates that the main problem, over-indebtedness, is common for many large institutions in the Asian giant, both banks and state-owned companies. Likewise, it highlights that” the real estate sector in particular has experienced an increase in prices in the last 20 years “, despite the government’s efforts to curb real estate speculation.
“Even after the Evergrande problem is solved, the disease of over-indebtedness is likely to continue of China, since the debt is allowed to function without restrictions in particular areas of the economy until it is too late to avoid any type of consequences “, writes Hsu who describes the situation of the real estate giant as “a symptom, not a cause” of the problem.
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