China's Ever Grand Crisis

Property prices have risen considerably in the past 15 to 20 years, and it has made housing unaffordable for millions of people. The chinese government outlined a three red line policy to deter real estate companies from binging on credit. If evergrant were to go bankrupt, the implications of this won't just be limited to the real estate group. It will also send shock waves across the entire industry. A total collapse of the evergrand group won't board well for any one. Nearly 70 per cent of chinese household wealth is tied up in real estate. But there's growing belief that the communist party will engineer a soft landing.