China Evergrande, one of the largest Chinese developers have over liability of $300 billion. What's going to happen next?
What we are wondering today is what will happen to China’s financial system.
Is it going to be a full-blown financial debt crisis?
Maybe the Evergrande story will give us a clue.
Before I share my thoughts on the impact of Evergrande, we’ve got to go back to the 1980s.
The good old saying: “it doesn’t matter whether a cat is black or white, if it catches mice, it’s a good cat.” still holds true in China today. The point was Deng Xiaoping knew capitalism works.
That phrase was to lift hundreds of millions of Chinese out of poverty.
China adapts. It’s a communist country that’s willing to adopt western ideas to grow. As long it works and benefits the overall well-being of China.
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