Victor Shih on the Evergrande crisis

MERICS China Podcast

China’s real estate giant Evergrande has been making headlines for a while now. Having accumulated more than 300 billion USD in debt, Evergrande – one of the largest property developers on earth – is at the brink of collapse. On Monday, trading of Evergrande’s shares was suspended on the Hong Kong stock exchange. The week before, it missed a key bond interest payment. What has caused this pressure on Evergrande? What consequences would an insolvency entail for China’s real estate and financial markets? What kind of toolkit does the Chinese government now have at its disposal to manage the situation? In this podcast, MERICS Director Communications and Publications Claudia Wessling talks with Victor Shih of UC San Diego. He is an expert on Chinese banking and fiscal policies and has recently published an edited book titled “Economic Shocks and Authoritarian Stability.”