China Is consistently proving that it’s not a safe place to invest your financial resources, at least not right now.
According to CNBC, china has become one of the riskiest places in the world to invest your money:
The crisis surrounding indebted Chinese property giant Evergrande is rattling faith in the country’s global investment story, Allianz chief economic advisor Mohamed El-Erian said Monday.
The comments come as Evergrande, China’s second-largest property developer by sales, is on the brink of collapse under a crushing debt of $300 billion.
Investors fear the fallout will lead to be contagion across financial markets. Hong Kong equities saw a sharp sell-off during the Asia trading session Monday, and U.S. stocks fell sharply.
The Evergrande development, combined with headlines this year about Chinese regulators cracking down on industries from technology to gaming, is “shaking this notion that China is an investable market,” El-Erian told CNBC’s “Squawk Box.”
“What’s happening in China is shaking key tenants of this global investment theme … which has been that government will always stand behind the financial sector. It’s not,” El-Erian said.
When asked whether he believes the Evergrande crisis has damaged faith in China as an investable market for the moment, or in the long-term, El-Erian said the shake-up is likely to be temporary and marks a transition period for investors.