Evergrande Explained (KraneShares)
- China real estate mega developer Evergrande sparked cries of “China’s Lehman Moment” in the Western media when it postponed a scheduled debt repayment.
- Neither a disorderly default nor a complete government bailout are likely. The most likely outcome is a government-facilitated debt restructuring, which appears to already be underway
- Evergrande’s story is intertwined with the story of China’s ongoing economic transformation and shift away from real estate investment towards investment in growth industries such as technology and consumer products.
- The Evergrande moment may present an attractive entry point into the Asia high yield bond market because risk controls are tightening at the same time yields have been driven up. READ MORE
- 3 Misconceptions You Might Have About China (KraneShares)
- Investors Are Overestimating the Extent of China’s Slowdown (FT Adviser)
- China to South America: Consumer Technology Growth in Emerging Markets (KraneShares)
- Evergrande Debt Crisis Shines Light on China Real Estate Bubble (Nikkei Asia)
- Evergrande and China: A Lehman Moment—or Less “Grande” Than That? (Franklin Templeton)
- China beyond Evergrande: Contagion or containment? (PineBridge Investments)
- China Will Not Be Able To Offset Its Property Bubble Easily (Daniel Lacalle)
- Evergrande on Brink of Collapse: 4 Things to Know (Nikkei Asia)
- Letter From Asia: Evergrande is No Lehman (Nuveen)
- Evergrande Crisis and Contagion Risks (Franklin Templeton)