If the company were to fail to repay its vast $305billion (£221billion) debt, there are fears it could spark the collapse of the huge property market in China. While it is unlikely the company itself will be bailed out by the Chinese Communist Party (CCP), if the property market in China does collapse, it could spark “major problems” for the economy in the state, an expert has claimed. Speaking to Express.co.uk, professor Steve Tsang director of the School of Oriental and African Studies’ China Insititute said: “The individual companies don’t matter very much.
“They are unlikely to be bailed out.
“The property market matters, and if it triggers the collapse of the market, that is a very big deal.
“The CCP is banking on that it won’t do so.”
The property market is essential for China’s GDP and is valued at $55trillion (£40trillion) – four times larger than the country’s GDP.
When including construction and property-related goods…