13 December 2023
China’s banking system is at risk of a severe crisis, with its real estate sector’s troubles potentially wiping out $4 trillion. The sector, plagued by debts and defaults, has left enough empty homes to house 3 billion people. This crisis could have a major impact on the highly-levered banking system, potentially exceeding the $700 billion losses of the U.S. Great Financial Crisis says Hayman Capital CIO Kyle Bass.