In recent weeks, a string of business developments in China have stoked fears that contagion could lead to a chain of defaults and perhaps even stoke a marked growth slowdown in China with global repercussions On Thursday, 10 August, Country Garden, one of the few major developers in China to avoid bankruptcy in recent years, issued a profit warning. The next day, its shares fell to record lows, affecting the …
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Housing
Supply-side reform is Beijing’s way of removing dead weight from state-owned enterprises (SOE), cutting back on corporate debt, and accelerating the economy. Debt is weighing on China’s growth, with much of it generated by SOEs. However Beijing’s stimulus packages are increasingly ineffective. State sector reform could give the economy new life – but Andrew Collier asks if it can succeed. Where did supply-side reform originate? Beijing’s new mantra first appeared …