The property sector is one of the most serious sources of downward pressure on China’s economy. It is in disarray after several large property developers defaulted on their bond payments this year and in 2021. This can become a major depressant for Chinese growth, with big implications for the global economy. Chinese authorities are, however, far from powerless. Among the many avenues that Beijing can consider to put the property sector on to a healthier footing, revamping social housing by channelling long term finance from pension funds is one of the most propitious.
Nascent emerging market debt crisis exposes China’s strict restructuring rules By Herbert Poenisch China has become a major global creditor. Emerging market economies are vulnerable to supply chain bottlenecks, as well as inflation leading to rising debt servicing costs. This puts these countries into acute debt servicing strains.
MEETINGS Prospects for emerging markets Tuesday 6 September, Broadcast Ayhan Kose, chief economist and director of the prospects group in the equitable growth, finance and institutions practice group of the World Bank, joins Mark Sobel, US chair, OMFIF, for a discussion on the global macroeconomic outlook.
ON DEMAND Why the European Union is open for business and how Asia can benefit With the advent of the €800bn NextGenEU programme, Europe is investing heavily in its own future. The European Commission’s budget chief, Johannes Hahn, details how Asian corporates and investors can take part in and benefit from the investment drive.
LATEST REPORT Sustainable Policy Institute Journal In the summer edition of the journal, contributors lay out why the ‘S’ in ESG is becoming a priority for investors and why social and human rights issues are taking centre stage.
