Approaching investment in China’s property sector in the face of default risks

Published on 22 September 2021

Concerns around default risk at property developer Evergrande are having wide ranging effects on investment in the sector, and across China’s bond markets. While headlines talk of a ‘Lehman’s moment’ many investment managers are looking at opportunities created as other investors withdraw.

Chris Perryman, senior portfolio manager and head of trading at PineBridge Investments, talks us through the process of assessing opportunity versus risk in the sector at present, and the level of concern that portfolio managers should be cognisant of as the situation progresses.