MAMOKETE LIJANE: China’s inability to deal with looming real estate crisis could spark global contagion
The sector needs to shrink but the soft landing it has been looking for is unlikely
China is in the headlines again, this time because of the threatened implosion of a real estate development company, inauspiciously called Evergrande.
Evergrande is the second-largest real estate development company in China by revenue. Estimates are that real estate and related activities account for about 30% of China’s GDP, so this is arguably the largest sector of the economy...