PremiumYear Six Of China's Housing Bust: Goldman Hikes Its Property Drag Estimate As Beijing Kills Off Presales
On Sunday we laid out why Hartnett thinks China is now the biggest risk to global earnings: domestic demand is on strike, so Beijing is doing what it always does and exporting its way out, flooding the world with deflation in the process. And at the heart of that buyer strike sits the one sector that has been bleeding for half a decade, and which BofA's strategist flagged in his "Biggest Picture": property investment is still down 20% YoY, record-low bond yields notwithstanding.
Well, as if on cue, Goldman's China economists just published a long, sobering update on China's original sin, and the punchline is in the title: the downturn is "deeper than previously anticipated."