Markets seem to have moved on from the Evergrande freakout earlier this week. The mess is far from over and there are still no signs a full bailout is coming, but it looks clearer now that an insolvent PRC real estate firm and its corrupt management are not going to crash the world, or even China.
Is the treatment of Evergrande another sign that Xi is serious about changing the PRC’s development model, and that he is confident enough in his and the Party’s political security, as well as the efficacy of the stability maintenance system, to cut deeper into the political and economic malignancy that is the PRC real estate industry? Or are policymakers overconfident in their ability to control the Evergrande debacle? I hope we can discuss tomorrow in the weekly discussion thread.
Today’s Essential Eight items:
People’s Leader Xi and the 4th Chinese Farmers' Harvest Festival
Chen Yixin on grassroots social governance
European Chamber unhappy with self-reliance and inward…