China Strategy/Stress-testing Banks and Developers in a Property Meltdown

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Investment conclusion: Our theoretical stress tests on Chinese property developers and banks paint a rather gloomy picture. The tests show that all developers have earnings and solvency issues if property sales volume and prices fall at the same time (past experience). They also show that all banks have earnings risks, although not one of them appears to have solvency issues (the only good news).
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