China faces not only its most prominent problem Evergrande but a range of issues, says leading economist Arthur Kroeber in the New York Times. Shortage of electricity, dealing with its big tech companies and many other in-debted giants offer similar challenges. “The common feature of these crises: All were triggered by government policies,” he writes.
What is Beijing’s worst nightmare? The trade war? The troubles in Hong Kong. No, says political economist Shirley Ze Yu. China’s real nightmare is a collapse of the property market, she writes in the South China Morning Post. “China’s property market is the grey rhino, overfed on massive liquidity steroids.”
Yujiapu, Tianjin’s financial district, is building China’s Manhattan, with loans since most inhabitants still have to arrive. That goes well, says financial analyst Victor Shih, as long as the project has the political goodwill in Beijing to subscribe giants loans, he tells in the New York Times.
The Hurun Global Real Estate Rich List, released last week, shows that China has the most real estate billionaires, followed by the US. The country’s building boom caused by massive urbanization explains the top position, says Rupert Hoogewerf, chief researcher of the Hurun rich list to Barron’s.
Dropping stock markets have caused a bloodshed at the 2018 Hurun Rich List where 11% dropped off the list compared to 2017. But also 219 new faces entered the list, says Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher at their website. Alibaba’s Jack Ma became number one again, pushing out real estate tycoons.
Media are looking for winners and losers in the trade war between China and the US, and while damage can be inflicted in the short run, China is going to outlast an economic war with the US, says renowned economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know to Money Week.
A strong shift from real estate tycoons to IT-giants marks a shift at China’s economy in the ongoing political meetings in Beijing, says author Shaun Rein of The War for China’s Wallet: Profiting from the New World Order to the South China Morning Post. “China is picking five to 10 private technology companies to make them national champions.”