Red Ponzi Pumping—-Another Round Of Empty Apartments

While many have attributed the resilience in China’s steel prices this year to Xi Jinping’s “supply-side reform magic”, we believe a much more basic measure is at play. More specifically, we believe that as external pressures began growing last year, intensifying earlier this year (i.e., an escalating global trade war + US dollar appreciation + resumption of hot money outflows [Ex. 5]), China resorted to its old ways and unleashed its property market… yet again.