George Soros warns China is facing an economic crisis
China is facing an economic crisis after a real estate boom ended with a bang last year, according to investor George Soros.
The billionaire said in a speech at Stanford University's Hoover Institution Monday that President Xi Jinping may not be able to restore confidence in the troubled industry
which has been hit by a series of defaults by developers and falling prices for land and apartments.
China's real estate boom was based on an "unsustainable" model that benefited local governments and encouraged people to invest the bulk of their savings in property, Soros said
Government policies designed to curb the boom made it difficult for indebted real estate behemoth Evergrande to pay its debts, he added
The developer is reeling under more than $300 billion of total liabilities including about $19 billion in offshore bonds held by international asset managers and private banks on behalf of clients
Government officials have been sent into the company to oversee a restructuring, but there's little clarity about what comes next
Evergrande has appealed for more time, but some lenders appear unwilling to wait