Evergrande is no Lehman but the risk is stopping this investor from buying Chinese property stocks

Some local media reports suggest Chinese authorities have told Evergrande founder Xu Jiayin, once the country's richest man, to use his personal wealth to alleviate the embattled company's debt crisis. Why? Evergrande is resuming work on some of its stalled projects after a month dominated by negative headlines about its inability to pay a key foreign loan's interest. Sam LeCornu from Stonehorn Global Partners never said Evergrande would be a Lehman Brothers moment (like most analysts on the show) but does believe the bigger risk is potential for social unrest given 1.2m unfinished homes. That explains why the fund has no exposure to Chinese property or banks. In fact, Sam continues to question the structure of how this problem came to be. However, some guests on this program have gone one step further suggesting Chinese investments are officially in the "too hard" basket. Not so Sam, who says the key is to educate yourself about the regulations and quantify its impact on individual stocks.