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In this clip from The Call @ Hedgeye, China analyst Felix Wang and Hedgeye CEO Keith McCullough discuss the implications of the Chinese government letting their property sector default, noting the China Evergrande Group (3333.HK) as a prime example. “The fact of the matter is, the Chinese just did what America doesn’t have the balls to do,” exclaims McCullough. “They literally let the company default!" “They took their hickey’s in their stock market locally the whole way down. As you know it was a terrible year. It’s not like they came out and did the P.E. Powell thing. They let themselves wear terrible returns for the stock market and, low and behold, throughout the default period for Evergrande, Chinese stocks both in Shenzhen and Shanghai have broken out to bullish trends. That’s actually how you let a market clear.” |
(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates Click here to learn more.)
