Large Chinese real estate developers will become “zombies”

MacroLens Principal Brian McCarthy hopes Evergrande bondholders and shareholders will be “a largely wiped out,” and says the Chinese real estate stock rally could be a sign of a market in the early stages of a speculative frenzy in Chinese stocks as their reaction was not justified by the new stream. He also assesses the impact of Beijing’s anti-volution campaign, warning that companies may be in debt for the broader sector.