You mean total ability to intervene in the market and total ability to control politics if it wants to? To turn things upside down overnight? No if CCP is letting this Evergrande thing boil over, it's to show that it doesn't give a s*** especially when there is foreign money involved. It's only "genuinely serious about curbing excessive leverage and property speculation" when it's not a company that is started with CCP's seed money. The state-run enterprise Huarong was in the same s*** as Evergrande. It got bailed out last week so swift that we didn't even hear about it.
China may have the power to intervene. But looking at Xi's policy actions holistically, the political will is to go a different way. Most likely, they see the dire problems ahead and is trying to steer the country back to a Maoist era thinking.
Sell it, short it, go all in, bet against it,...go full, maximum, leverage. And become the next Michael Burry. Vegas or Bust.
Those two situations are incredibly different. With LTCM, you had the trade counter-parties (The Investment Banks) unwinding positions and providing offsets. With Evergrande, the counter-parties are disparate entities in other parts of the economy: concrete companies, appliance companies, plumbing fixture companies, electrical supplies, all sorts of building supplies, trades and contractor labor... it’s not at all like LTCM.