6.37 Is The Chinese Snowball Getting Bigger? | Nucleus Investment Insights

This week we delve into the world's largest asset class. Alarming economic data has sparked investor jitters, but imbalances have existed for a decade or more.

Over the past 15 years, China's construction frenzy has reached historic proportions. The trigger point is elusive, akin to predicting an avalanche. Conditions are ripe for a seismic shift, this week we ask the big question: Why now?

Part of the answer lies in the developers. But the big names of Country Garden and Evergrande aren't exceptions; they mirror the industry. China's top developers grapple with four massive challenges.

Then we look at macro construction stats. Something's off. The numbers just don't add up.
Can infrastructure fill the gap? How much bigger can China grow that spending?

We also consider shadow banking issues, fading hopes of a consumer-led rescue and financial repression's paradox.

This is China's fourth attempt at breaking its property addiction—stakes are rising.

Join us in this week's podcast as Nucleus Wealth Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr dig into the arguments and look at the evidence.

Agenda:

Biggest asset class in the world
Property Developers
Macro construction stats
Infrastructure to the rescue?
Shadow banks
Consumers to the rescue?
Financial repression can’t be a cause and a cure
Latest Data
Investment Outlook

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Nucleus Wealth is an Australian Investment & Superannuation manager that can help you reach your financial goals through transparent, low-cost, ethically tailored portfolios. To find out more head to Nucleus Wealth Website.

The information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management. Nucleus Wealth is a business name of Nucleus Wealth Management Pty Ltd (ABN 54 614 386 266 ) and is a Corporate Authorised Representative of Nucleus Advice Pty Ltd - AFSL 515796

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Nucleus Wealth offers all investors the option to tailor their investment portfolios according to the investor’s own brand of personal ethics. While Nucleus Wealth maintains ethical standards of integrity, honesty and reliability, it does not seek to impose these on its investors. Rather, Nucleus Wealth offers investors a system of investment that incorporates three core strategies: (i) customisable; (ii) transparent; and (iii) safe. Within this, investors are given the ability to customise their investments insofar as it aligns with their ethical preferences, rather than that of the fund manager, by using screens and tilts. Once the investor’s portfolio has been adjusted, Nucleus Wealth provides the investor with a company profile, access to performance dashboards and detailed monthly performance reports of each company within the investor’s portfolio to further inform the investor on their investment decision and the company’s ethical standing as it aligns with the screens and tilts opted for. Nucleus Wealth utilises a number of domestic and international sources to identify whether companies from particular countries or sectors fall within the categories of screens and tilts which the investor may choose to apply. While Nucleus Wealth undertakes its own fundamental analysis on each company, there is also the risk that investors could reach a different conclusion to Nucleus Wealth on whether a company falls within the frame of responsible filters being applied. For more information visit Nucleus Wealth's responsibility-related statements.