China Developers Face Default Risk as Cash Squeeze Hits

The video discusses the challenges faced by Chinese developers due to a crackdown on shadow financing, which accounts for a significant portion of their funding. The onshore bond market is largely shut, and offshore markets demand high yields, increasing default risks. Developers face a refinancing wall with record debt maturities, raising concerns about systemic problems. The potential repercussions include impacts on banks and the construction industry, with the developer market estimated at $22 trillion.

What percentage of funding for developers is affected by the crackdown on shadow financing?

• 10%

• 30%

• 40%

• 20%

What is the estimated amount developers need to repay in bonds by 2019?

• $50 billion

• $100 billion

• $150 billion

• $200 billion

What could happen if developers falter in their financial obligations?

• Decrease in construction activities

• Increase in housing prices

• Repercussions in other parts of the economy

• Boost in economic growth

Which developer was mentioned as having missed debt payments recently?

• Shima Property

• Joe International

• John Hall

• PIMCO

How does the size of the China developer market compare to China's 2017 GDP?

• 1.5 times

• 0.8 times

• 1.8 times

• 1.2 times