Excerpt from...

China risk, global gaze, Evergrande, debt 33 trillion yen. Some deadlines approaching.

Article and Translation provided by:

Sophie Ding, Staff Writer, Business

Asahi Shimbun New York Bureau

 

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David R. Kotok - In the News

 

There are also large investors in Japan with evergrande stocks and corporate bonds. As of the end of March, the Government Pension Investment Fund (GPIF) has invested a total of approximately 9.7 billion yen. A spokeswoman said, " We are investing through an asset management company as part of our long-term diversified investment , " although it is small compared to the total investment scale of 186 trillion yen .

"With some exceptions, China's domestic financial system has little ties to foreign investors," said Guy Lava, a U.S. investment advisory firm. ..

However, it is not without anxiety. "More worrisome is the impact of lower construction demand in China on the global economy," Raba said.

David Kotok of Cumberland Advisors, a US investment advisory firm , said high uncertainty , including the government's response, is a risk in the future. "There are many uncertainties about whether other Chinese real estate companies are having problems and how far they will spread to overseas financial institutions," he said.

An executive of the Financial Services Agency of Japan said, "There is little direct impact on domestic financial institutions." On the other hand, if the Chinese government makes a mistake, "China's real estate market will collapse and the crisis will indirectly reach the world. It will resemble Lehman."

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David R. Kotok
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Asahi Shimbun