China may think it’s time to ‘rip the band-aid off’ property market

Brian McCarthy from Macrolens says China Vanke, once viewed as a state-backed stabiliser in China’s property crisis, now appears set to follow Evergrande and Country Garden into default. With Beijing pulling back support and state banks unwilling to extend maturities, he says China authorities may be deliberately allowing the sector to take another painful leg lower in an effort to clear excess inventory and reset the market.