{"id":59443,"date":"2021-09-22T08:29:50","date_gmt":"2021-09-22T13:29:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59443"},"modified":"2021-09-22T08:29:50","modified_gmt":"2021-09-22T13:29:50","slug":"is-evergrande-a-symptom-of-deeper-malaise","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59443","title":{"rendered":"Is Evergrande a symptom of deeper malaise?"},"content":{"rendered":"<div class=\"hero-section\" data-type=\"type-2\">\n<header class=\"entry-header ct-container-narrow\">\n<h3><a href=\"https:\/\/morningporridge.com\/blog\/blains-morning-porridge\/is-evergrande-a-symptom-of-deeper-malaise\/\">Is Evergrande a symptom of deeper malaise?<\/a><\/h3>\n<div class=\"page-description ct-hidden-sm\"><strong>Evergrande\u2019s imminent default is rocking markets \u2013 but few believe the collapse of a Chinese property developer could trigger a global financial crisis. What if Evergrande is just a symptom of a deeper malaise within the Chinese economy and its political\/business structures? Maybe there is more at stake than we realise? What if Emperor Xi decides he needs a distraction?<\/strong><\/div>\n<\/header>\n<\/div>\n<div class=\"ct-container\" data-sidebar=\"right\" data-vertical-spacing=\"top:bottom\">\n<article id=\"post-9119\" class=\"post-9119 post type-post status-publish format-standard has-post-thumbnail hentry category-blains-morning-porridge category-china tag-china tag-china-economic-risk tag-evergrande\">\n<div class=\"entry-content\">\n<p><em>\u201cIf that\u2019s true, we are very close to the China Syndrome \u201d<\/em><\/p>\n<p>This Morning \u2013\u00a0<em>Evergrande\u2019s imminent default is rocking markets \u2013 but few believe the collapse of a Chinese property developer could trigger a global financial crisis. What if Evergrande is just a symptom of a deeper malaise within the Chinese economy and its political\/business structures? Maybe there is more at stake than we realise? What if Emperor Xi decides he needs a distraction?<\/em><\/p>\n<p>After yesterday\u2019s market tumble Evergrande dominates thinking this morning. The early headlines say the risk is \u201ceasing\u201d. Don\u2019t be fooled. S&amp;P are on the wires saying it\u2019s on the brink of default and is unlikely to get govt support. It\u2019s Asia\u2019s largest junk-bond issuer.\u00a0<em>Anyone for the last few choc-ices then?<\/em><\/p>\n<p>The market view on the coming Evergrande \u201c<strong><em>event<\/em><\/strong>\u201d is mixed. Some analysts are dismissing it as an internal \u201c<em>China event<\/em>\u201d, others reckon there may be some systemic risk but one Government can easily address. There is some speculation about \u201clessons\u201d to be learnt\u2026 There are even China supporters who reckon its proof of robust China capitalism \u2013 the right to fail is a positive!<\/p>\n<p>I\u2019ve got a darker perspective.<\/p>\n<p>The massive shifts we\u2019ve seen in China\u2019s political\/business public persona over the past few years have been variously ascribed: a reaction to Trump\u2019s protectionism, China taking its place as a leading nation, Xi flexing his military muscle, and now a clampdown on divisive wealthy businesses to promote\u00a0<em>common prosperity<\/em>.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Is Evergrande a symptom of deeper malaise? Evergrande\u2019s imminent default is rocking markets \u2013 but few believe the collapse of a Chinese property developer could trigger a global financial crisis. What if Evergrande is just a symptom of a deeper malaise within the Chinese economy and its political\/business structures? Maybe there is more at stake [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[15674,23143,130,1153,17407,1849,862],"class_list":["post-59443","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-bill-blain","tag-blains-morning-porridge","tag-china","tag-distraction","tag-evergrande","tag-financial-markets","tag-war"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59443"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59443\/revisions"}],"predecessor-version":[{"id":59444,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59443\/revisions\/59444"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}