China Evergrande, once the country’s second-largest real estate developer, is drowning in debt. Some 1.5 million people have put deposits on new homes that have yet to be built. Bankruptcy could be catastrophic.
Over the past two days, angry protesters have gathered outside the real estate firm’s headquarters, demanding to know about its future. Investors are growing increasingly nervous that if Evergrande were to collapse, this could could spread to other property developers and create systemic risks for the banking system of the world’s second-largest economy.
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#Evergrande #China #RealEstate
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Stop being salutes. It's too early to know if they are gonna make the loan payment
There has never been ANY PLAN B
evergrande going bunk is literally a result of government regulation, and deleveraging of the economy. Evergrande going down is by design, to prevent a bigger shock in the future.
That is a joke. Totally different from Lehman. Every grand is big yes but still tiny compared with the China real estate and whole economy market. The more sugnifucant difference is it had less finnicial debt links with others. than Lehman which collapsed many others. If sth you believe claps happen it should have already happened in a month. In reality , Most my friends house in there are ok and ppl have much cash than credit cards. Every time in last three decades some oversmart ansylust predicted China economy would collapse , they all failed at the end. They totally didnot understand why it is ok and why it grows in decades.
got evergrande stock share yesterday
Very little on what's behind it, whereas the title suggests this video explains about that.
It is because the communist chinese government think they can takeover the world economy and expecting flooding of money going to china..
And now China couldn’t pay money for coal.
Many China city was power failure China people was very angry but they can’t do anything even complain on the internet.
In China *govement is god people are servants *
First lets get the truth out the way. this is a Chines company not an independent one. They have built whole cities that have enough structures to house millions (each) $800 billion USD in dept. They should have built a canal from Caspian Sea to the Yangzee and Yeloow Rivrs in China, refilling the Aral Sea and fed by canals built off the many Russian rivers that stretch from the arctic sea to southern Russia. Over 90% of this canal would be in the desert with the mountians on the China Uzbekastan border and the last few hundred miles in Central China for multiple lock systems at interval with moderate drops to get to the lower elevations of China. The canal would be wide enough for 2 Panama City class canal ships to pass eachother. Even this project woudln't cost half or a quarter of $800 billion USD.
The issue is instead of relying on free-market principles, China used a centralized, government controlled financial model that does not work.
maybe he built terrible anthills in which you don't want to live?)
Greed!
They will bail it out, if this is the biggest of China's company. They will never let it collapse just like that.
Covid is not bad enough right China? And now financial crisis? Why on earth people buy undeveloped house?
Every bad thing seems to be coming out of China lately….
Same uber-greed, uber-ambition, uber-optimism, pie-in-the-sky that led to 1929 . . . 2008 . . .
$300 Billion is nothing to the Chinese. They have a population of 1.7 Billion people it's like $20 per person for 2 weeks, that is not a crisis. However, it does make people lose confidence in the system with this nothing is too big to fail mentality. A company's worth is based on profits and more importantly, the potential to make money if that is lost then the entire market's stability is threatened and that is the problem, not the $300 billion in debt, but the hundreds of trillions in confidence that is loss by the selloff..
Wait until the US pays off it's bonds with a trillion dollar coin.
History has it ways of repeating itself
"is the government in Beijing going to step in?" Is this a joke question. Evergrand is state owned.
I imagined Clifford sitting there in his singlet. I blinked and it was gone
Every Chinese large company has a CCP conman story (so called "White Glove") behind it. Those investing in them are either oblivious or greedy. Don't put your faith on any accounting audit firm (e.g. PWC) or investment bank (e.g. BlackRock) either. They are compromised long before, and only fatting their own pocket while eyeing on your pocket. Staying away from any Chinese company no matter how attractive on book until the country becomes a democratically accountable.
Parking Spaces are valuable in China.
China is the most capitalist communist state ever
If only you know what the future says, youll
know that indeed cryptocurrency is the future,
investing in it now will be the wisest thing to do.
Hold!! And you"ll thank yourself
Unlike many countries China holds a obvious great hand. They went for a financial target and this is just some oversight issue. They will come out unscathed imo.
"We will fix it, the Americans will pay for this collapse."
Hmmmmmm
The real property of Evergrande is ArianaGrande, it needs to say that and sayed
Print dat money.
Many experts explain why China will fail. All this experts might help the US government to solve the depth crises – the worn out infrastructure – the bad education – the racism – the death rate by shootings – the inmate rate – the poverty and homeless – should release the Guantanamo prisoners according the human rights and stop all the sancions against humanity and all the war without the UN resolution. Please finish this task and then we will all focus on the bubbles of China.
Make sure you take all of his assets you can’t do this to people. 300 billion he borrowed he’s stole majority of that money I’m sure. The owner needs to be investigated deeply he has that money stashed somewhere hidden.
As the new Chinese crack down on American companies continues and they exit China faster than they entered this is going to bankrupt a big portion of the business that China had counted on to profit on their terms. Their dreams of world financial domination are over.
This is a classic reckless operating procedure of communist enterprise. Not surprise at all…Tho I wish the evil CCP itself go bankrupt
China needs to increase manufacturing cost!
Your ripping your people off!
Increase manufacturing costs!
China will collapse
Woke = Broke
Time for an update?
Just so you know, this is likely to happen in Europe and USA aswell in upcoming years if we dont stop the inflation, low interest of banks and giving out loans as we are selling sandwiches.
I predicted this curve on the trend I knew this would crash that's why I used to hedge fund on this I bet a huge on the edge not paying off I know it fall somehow I'm able to predict trends that's why I work for Merrill Lynch I started making huge money off a small bets little micro