country garden and evergrande are just two recent examples of china's property developers in crisis.ek, some of china's largest banks reporting the latest earnings which has showed an increase in bad loans to the property sector. the chief economist at hang seng bank china and she says this property market downturn is far from over. while china's properties access are still in the process of going down, in terms of construction and the sales and while we look at the recent data, it's pretty clear that there are way more houses being completed than being sold. the situation has pushed a more potential consumers to be more conservative, it looks like the liquidity and will estate sector is still drying up. and the government —like intention to bail out those largest property developers and there is some government initiatives tried to bail out some of the projects. but in the long—term, i think the next two — three years at least, we will still see the term further. chinese banks like baker communication reported an increase in bad loans in the property sector, that must be concerning?

country garden and evergrande are just two recent examples of china's property developers in crisis.week, some of china's largest banks reported their latest earnings, which showed an increase in bad loans to the property sector. dan wang — she is the chief economist at hang seng bank china. it at hang seng bank china. is still in the process of going it is still in the process of going down to the terms of construction and sales. looking at recent data it is clear that there are way more houses being completed rather than being sold than the situation has pushed more potential consumers to be more conservative, it looks like the liquidity in the real estate sector is still drying up. and the government lacks intentioned to bail out those largest property developers and there are some projects and government initiatives to bailout a set of projects. in the long—term, to wife and three years, we will still see the downturn further. chinese banks have reported an increase in bad loans in the sector, that must be concerning.- sector, that must be concerning. sector, that must be concern

the most high-profile case we've seen is china evergrande which was liquidated.ditors are emboldened by the move of the hong kong court to liquidate and the risk of these companies getting a liquidation order is higher than ever. so what they were noting was that developers that have the most assets, sure mall has a lot of projects. hong kong and overseas. that makes it an easy target for creditors because they can -- the banks secure lending so they claim assets. on the other hand, two weeks ago was reported that they are in a tug-of-war with creditors, struggling to come up with a restructuring plan. creditors are urging others to vote against its. so there are a lot of things going on and the petition comes at an inopportune time. haidi: in terms of these developers, are we seeing alleviation? sales are the weakest in almost a decade. are we careening toward a cash crunch? loretta: it seems people expects property sales continue to drop because we are not seeing a a lot of massive support measures from the government and despite loosening demand upon the deman

last year seeing the property market is about to turn, so the people who have been negative on evergrandeikely so finally saying it is time to turn and look at property seriously. at the ribbon a couple of small incidents, some of the legal cases and hong kong have given more time for property companies to come together with a plan, so that is positive as well, but it is a massive shift of sentiment. chinese stocks have been undervalued and let's start putting money toward. haslinda: what effect will this really take? will it be straight lineup or volatile? >> it is difficult to imagine a straight line, because of the background you have uncertainty about the currency. they have been keeping the yuan strong artificially against the dollar. the trading partnership between the two countries is so big. china cannot afford to allow its currency to be too strong against the japanese yen, so now it is a buying time for itself. can it wait longer hoping the japanese authorities come in intuitive favor. that in the background for investors is a big question mark, because if you start throwing mon

they cannot get insurance in the coastal areas so the real estate problem which took china with evergrandeg you brought that economy down. things on the horizon, i tend to be bullish and i like a lot of the stock pickers market there is companies doing very well it is the winners and people taking the lunch of others like nvidia and some others are growing and others are losing market share it's not everybody being treated the same but with the commercial real estate comes to it's going to be tough around here and a lot of people might not recognize the. >> steve switchman ahead of blocks of the largest order of commercial real estate thanks rent is going down and hasn't caught up with the numbers and we haven't seen evidence of that in any way and were watching markets move because durable goods orders is crossing, stay right there as we get the breaking news on durable goods orders, gerri willis. >> the top line up beat, this is important durable goods at key measure of industrial activity 2.6% increase of expectation of 2.5% that is a beat, when you look at transportation in expectation

the second biggest developer in china, evergrande, their stock effectively is at zero.d more pain on chinese shareholders as well as the economy. >> wow. that, of course, will have a big impact on the u.s. i'm hearing we have to go to break. but why don't you give us your final chart. go through it quickly for us. >> i'll give it to you in two seconds and show the eerie parallels between what is happening in china now and our financial crisis. housing starts for both countries. china in red. u.s. in blue. see how they track at we hit a peak and a collapse. china is still collapsing. we had our collapse. we've rebounded partly but not nearly enough, which is why we have a shortage at the moment. home sales follow the same trajectory, up, down. china is still not hitting bottom. the parallels are eerie, shall we say. >> boy, they really are. >> "morning joe" economic analyst steve rattner, thank you very much. >> thank you, steve. >> thank you. >>> ahead on "morning joe," a historic split screen will play out this morning. just hours from now, donald trump's lawyers will