The construction site of a China Evergrande Group development in Wuhan is seen on December 22, 2021. Evergrande is the world’s most indebted developer. Photo: Bloomberg
The construction site of a China Evergrande Group development in Wuhan is seen on December 22, 2021. Evergrande is the world’s most indebted developer. Photo: Bloomberg
Michael Pettis
Opinion

Opinion

Michael Pettis

Painful as it is, China must rid its economy of an ever-rising property market

  • It will be impossible to wring speculation out of the sector without much lower prices and a significant increase in financial distress
  • But the longer the economy is dependent on an ever-rising property market, the higher the economic costs of reform

The construction site of a China Evergrande Group development in Wuhan is seen on December 22, 2021. Evergrande is the world’s most indebted developer. Photo: Bloomberg
The construction site of a China Evergrande Group development in Wuhan is seen on December 22, 2021. Evergrande is the world’s most indebted developer. Photo: Bloomberg
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