China is hugely in debt. The total debt in the People’s Republic is 287 percent of economic output and is therefore almost at the same level as the debt in the USA and Europe. The problem: According to the United Nations, China only has an average per capita income of 10,000 euros. This value is three times as high in Europe and even six times as high in the USA.
Evergrande is the world’s most heavily indebted real estate company. The company has amassed $ 300 billion in debt – but Evergrande cannot repay the debt. Bankruptcy is imminent. A few days ago, the next Chinese real estate developer, the Fantasia Holdings Group, reported payment problems. The fear of a chain reaction grows. Is the Chinese economy now threatened with a crash? Is Evergrande perhaps the trigger for a global economic crisis and to what extent is the German market affected by China’s problems? Michael Jakob, Managing Director of the AlleAktien portal, has the answers. Jakob himself lived in China for a long time and explains in this episode what investors should look out for in Chinese stocks.
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