Over the past 15 years, China’s construction frenzy has reached historic proportions. The trigger point is elusive, akin to predicting an avalanche. Conditions are ripe for a seismic shift, this week we ask the big question: Why now?
Part of the answer lies in the developers. But the big names of Country Garden and Evergrande aren’t exceptions; they mirror the industry. China’s top developers grapple with four massive challenges.
Then we look at macro construction stats. Something’s off. The numbers just don’t add up.
Can infrastructure fill the gap? How much bigger can China grow that spending?
We also consider shadow banking issues, fading hopes of a consumer-led rescue and financial repression’s paradox.
This is China’s fourth attempt at breaking its property addiction—stakes are rising.
In this week’s podcast Nucleus Wealth Chief Investment Officer, Damien Klassen and Senior Financial Adviser Samuel Kerr delve into the arguments and look at the evidence.
Take us on your daily commute! Nucleus Investment Insights is available in Podcast form on iTunes and all major Android Podcast Platforms.