On Challenges For China & Europe

It’s not China’s feared “Lehman moment.” But the psychological impact of Chinese property developer Vanke’s inability to pay its debt on time can’t be overstated, writes William. The situation is rattling investors who recall the 2021 default of China Evergrande Group and catastrophic aftermath. Now Vanke’s problems suggest the property sector’s troubles are far from over, putting the government’s GDP growth goals further from reach. Japan’s lost decades hold lessons for China, if only President Xi would heed them. … Also: The European Central Bank may be about to start tightening, notwithstanding the global challenges. This has stirred global debate about the limits of monetary policy to fix what ails an economy.