“Most analysts believe China will rebound,” states a recent report from Frost Investment Advisors titled Cracks in China’s Economy. “That may well be true, but we think there are some cracks in the foundation.”
Of course, many investors already know about the country’s out of control real estate debt, as evidenced by the problems at Evergrande Group. And they may be aware that the communist country is clamping down on business in a big way with increase regulatory actions. That shouldn’t surprise many people because China is a centrally planned economy.