#8 GREED & Fear
Behind the Balance Sheet
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The Chinese Government Induced the China Lima Moment
The chinese government announced a policy they called the three red lines policy. All property developers have to meet three financial leverage ratios by a certain period an time. If they don't meet those criteria, we're going to tell the banks to stop funding them. So they induced the crisis. Looks lust like you'd induce a baby and an what's going to happen? What is happening actually, is the big s oe developers are going to benefit from the consolidation. They will take ver the projects the ether grand and other company's likely can't complete ever the grounds been too lever. And wo stopped, by the ways, trading when i last checked, at one year hit.
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