China’s new home sales just collapsed 42%. The banks know what that means. The world’s largest asset class is breaking, and this time no amount of optimism will stop the fall, not even a trade deal.
New home sales in China collapsed by 42% in October when compared to last October, representing more than just another setback for the beleaguered Chinese real estate market, the world’s largest asset class. This is a major problem for Chinese banks, not that they were expecting different. So, we see interest rates are back to …