Assignment 3 Details

China Evergrande and some leading China property developers announce difficulty in repaying their bonds issued. In 2008, USA government implemented "Emergency Economic Stabilization Act" to bail out many toxic assets at that time. Do you think that the China government or China central bank should bail out the bonds of the property developers? Why or why not?

References:

China bond defaults hit US$20 billion in 2022, more than double last year's total, as property developers teeterhttps://www.scmp.com/business/commodities/article/3142216/china-pushes-use-carbon-quotas-loan-collateral-banks-seek-moreLinks to an external site.

Evergrande: Crisis-hit property giant faces deadline after bosses quit https://www.bbc.com/news/business-62287685Links to an external site.

Emergency Economic Stabilization Act of 2008 https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008#:~:text=The%20Emergency%20Economic%20Stabilization%20Act,by%20President%20George%20W.%20Bush