Goldman Sachs is investing in Chinese real estate debt, despite being one of the most battered assets in the global financial markets today. The debt crisis and escalating default risks threatening China Evergrande Group, China Properties Group, and Sinic Holdings are creating enormous problems for the nation’s real estate sector. But the investment titan believes the market is overestimating a contagion risk, which is producing a wide range of opportunities. Angus Bell, a member of Goldman’s portfolio-management team, revealed that the financial institution has been adding a “modest amount of risk” through high-yield bonds issued by the nation’s property developers and denominated in U.S. dollars. Goldman Sachs has also been pouring into the Chinese government’s local currency bonds, mainly because the People’s Bank of China (PBoC) is offering liquidity to local economies amid a slowdown. “Ultimately, the property sector has been the key driver of Chinese growth over the past …