Evergrande Is a Too Big to Fail Question for Beijing: Milken’s Lee

The video discusses the microeconomic incentives that lead to empty skyscrapers in China, focusing on the potential collapse of Evergrande and its implications for China's property sector. It highlights the importance of property as a savings vehicle for Chinese families and the challenges faced by policymakers in Beijing. The video explores whether Evergrande is too big to fail and the potential for Beijing to intervene, either directly or indirectly, to stabilize the market. It also examines the roles of municipal and federal governments in addressing property sector issues and the efforts to reassure the public while developing alternative investment avenues through capital markets.

In what ways might Beijing intervene in the property market to stabilize it?

What strategies has Beijing employed to cool off the property sector in recent years?