All the large Chinese property developers are going to become 'zombies': Strategist

Brian McCarthy, managing principal of Macrolens, says that he expects Evergrande bondholders and shareholders to be "largely wiped out", and that the rally in Chinese property stocks could be a sign of the markets being in the early stages of a speculative frenzy in Chinese equities as their reaction was not justified by the new flow. He also evaluates the effects of Beijing's anti-involution campaign, and warns companies could become laden with the broader sector's debt.