China’s property slowdown sheds light on another worrying debt problem
Local-government financing vehicles, not just developers, are saddled with lashings of debt
WHEN OFFICIALS in the southern city of Liuzhou began a routine auction of parcels of land in June, they found few takers. Only one of five plots received a bid; the rest went unsold. As in many cities across China, a downturn in the property market has meant less demand for the land on which apartment towers are built.
This article appeared in the Finance & economics section of the print edition under the headline “Lurking danger”
Finance & economics December 18th 2021
From the December 18th 2021 edition
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The great-man theory of Wall Street
Why finance is still dominated by bold individuals
Hong Kong’s property slump may be terminal
Demographics and geopolitics will make a recovery harder
Why everyone wants to lend to weak companies
An unanticipated side-effect of Donald Trump’s election victory
American veterans now receive absurdly generous benefits
An enormous rise in disability payments may complicate debt-reduction efforts
Why Black Friday sales grow more annoying every year
Nobody is to blame. Everyone suffers
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer