Without Beijing's ongoing intervention, the already gaping cracks in the Chinese financial system and property sector have become clear for the world to see. China's property developer giant Evergrande is looking like it might default on its debt without state intervention. But even if the consequences are largely contained within the Chinese property sector, there could be potentially significant knock-on effects. In a scenario where a protracted crisis unfolds within the Chinese property sector, the Australian and New Zealand property market and economy could end up feeling the heat. Ultimately Evergrande's fate and that of the Chinese property sector lies in the hands of Chinese President Xi Jinping and the Chinese Communist Party leadership.

Source: New Zealand Herald September 19, 2021 08:48 UTC