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China Property Debt Crisis Is Just Beginning, Charlene Chu Says

  • Charlene Chu sees further problems for China real estate
  • Ex-Fitch analyst says debt weighing on China economic growth

Charlene Chu, famed among China watchers for warning about a debt bubble when at Fitch Ratings, says that pain is only just beginning for credit extended to Chinese property.

In the wake of Beijing’s sweeping crackdown on leverage built up in real estate, China Evergrande Group and others have defaulted on a slew of bonds. Chu, a senior analyst at Autonomous Research, a division of Sanford C. Bernstein & Co., estimated that “we have 30 companies who’ve defaulted with total liabilities of around $1 trillion.”