As Beijing Finally Freaks Out About Its Crashing Property Market, A Key Trade Emerges

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by Tyler Durden
Saturday, Jan 08, 2022 - 11:00 PM

Back in late November, when the world was just starting to freak out about the previously unknown Omicron variant of covid which had just emerged in South Africa (and which despite all doomsday predictions turned out to be just as mild as we initially expected and could proceed to mark the beginning of the end of the covid pandemic) a different kinda of virus had gripped China's property market - the largest asset class in the world according to Goldman Sachs...

... and sparked by the repeated near-death experiences of Evergrande - had unleashed a bone-crushing shockwave across China's economy, which takes place as Beijing continues to maintain its deleveraging stance amid Xi's "shared prosperity" drive, which has meant far less created credit is available to mask the current weakness in the economy.