Sustainable Economic Growth - Essay Example

The global economic crunch has been a contentious issue since the 2000s. China is the fastest-growing economy and has been the greatest investment destination for foreign companies. In this regard, particular sectors of the economy explain the recent fall of the construction industry and individual firms. In this case, an article on In China, a Building Frenzy’s Fault Lines stages of rise and fall of Kaisa. This Chinese housing developer took pride in claiming popularity in the stock market and attracted significant capitalization across the world. However, many international firms that had signed contracts with it regretted it when the housing market collapsed. Many questions remain unanswered in this mysterious collapse of the financial market and slump in the Kaisa shares overnight.
A critical evaluation of this article offers insight into the concepts that support sustainable economic growth and the financial security of the market. China is noted as having ambiguous legal structures that fail to disclose the reality of existing market trends to foreign investors. Besides, cases of corruption and unclear source of the wealth of Guo Yingcheng explains the sudden collapse of this firm. Several lessons are learned from this scenario. Read More