Bloomberg with the info that Goldman Sachs Asset Management is buying China property debt.
- has been adding a “modest amount of risk” through high-yield bonds issued by China property developers and denominated in US dollars
- “Ultimately the property sector has been the key driver of Chinese growth over the past two decades,”
- “It’s unlikely the government will tolerate the impact on growth that would come about if it were to allow such a large number of developers to fail. The breadth of distress that the market is now pricing, it’s starting to look significantly out of alignment with the true extent of distress.”
More at that link above, Bloomberg may be gated.
