US Billionaire George Soros Warns Against Investing In China. Here's Why
NDTV
China's real estate boom was based on an "unsustainable" model that benefited local governments and encouraged people to invest the bulk of their savings in property, George Soros said.
Hedge-fund billionaire George Soros has warned against investing in China which is witnessing a decline in the real estate boom, citing the example of Evergrande which is finding it difficult to pay its debts in the face of government policies designed to curb the boom.
China is facing an economic crisis after a real estate boom ended with a bang last year, according to investor Soros, reported CNN.
At a speech at Stanford University's Hoover Institution on Monday, Soros said that President Xi Jinping may not be able to restore confidence in the troubled industry, which has been hit by a series of defaults by developers and falling prices for land and apartments.
Falling prices will "turn many of those who invested the bulk of their savings in real estate against Xi Jinping," Soros said, adding that the current situation "doesn't look promising."
