China’s property sector is undergoing a severe contraction. Given property’s large size and interconnectedness, the sector’s woes are raising a series of concerns about local government finances, banks’ balance sheets and even about the risk of a deep recession. We find these concerns overblown and argue that the risk of a disorderly adjustment in housing with damaging knock-on effects on the rest of the economy is low.

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About TRG

Founded in 2002, The Rohatyn Group specializes in emerging markets and real assets. The New York based firm currently employs over 120 professionals based in 16 cities across the U.S., Latin America, Europe, the Middle East, India, Southeast Asia and Oceania. It currently has approximately $6 billion in assets under management. For more information, please visit