Hao Hong, partner and chief economist at Grow Investment Group, discusses the prospects for China’s Country Garden, one of the largest non-state-owned developers by sales, which reportedly missed two coupon payments on dollar bonds that were due Sunday.
“big surprise”????
Not a surprise at all. China’s economy is built with tofu dregs exactly like Country Garden’s buildings are. China’s economy has been a fake shell game for a long time; discouraging savings and almost forcing citizens to invest into a property Ponzi scheme. Not only that but the government itself has been creating massive boondoggle infrastructure projects just to keep things afloat. Even if Country Garden pay within the grace period, they are only delaying the inevitable collapse.
Similar to Country Wide back in 2008.