Many China Developers to Default in 2022, Economist Collier Says

The video discusses China's property market challenges, focusing on the government's strategy to manage potential stagnation and social unrest. It highlights the three red lines policy, local government roles, and Chengdu's financial support for developers. The concept of window guidance from the PBOC is explained, emphasizing the unique nature of China's monetary policy. The video concludes with predictions for 2022, including potential defaults and the need for capital reallocation to small businesses for economic growth.

What is meant by 'window guidance' in the context of China's monetary policy?

What challenges does China face in reallocating capital to new growth areas?