China’s Real Estate Financing Crunch

China Evergrande, The country's largest real estate investor by sales volume is under pressure. Late last week investors dumped its bonds and shares after a document circulated on social media that said it was struggling financially. The letter asked the provincial government to back a company restructuring proposed by EVERGRANDE. Or else it's financial failure could pose a systematic risk to the Chinese economy. The company says the letter is fake but doubts remain. I asked James Gorrie about it today. He wrote "The China Crisis" which analyzed the weaknesses in the Chinese economy and predicted it's much more fragile than many think. I asked him his thoughts on the Evergrande news.