Consumer spending, according to NAB’s transaction data, went up 0.5% in both retail and total spending after being broadly flat last month.
Report
October 1, 2021
China Economic Update – October 2021
Debt bomb – managing the fallout from Evergrande will be a key challenge for Chinese authorities.
In late September, Evergrande, China’s second largest property developer, was on
the brink of default when it appeared unable to make interest payments on
offshore and domestic bonds. Although there is a slim possibility that default
could be avoided in the near term, a collapse seems inevitable in coming months
– given the company’s dire financial position. This issue has highlighted concerns
around the China’s broader corporate debt levels and raised fears of financial
contagion – which if fully realised could negatively impact the broader
construction sector, as well as the Chinese and global economies. These fears also
extend beyond just one company – with looming debt obligations in coming years
an issue for Chinese authorities.
For further details, please see the China Economic Update – October 2021
