China Evergrande, a very large real estate development company, missed bond payments, and (absent making payments during the grace period) will be defaulting on their bonds. The CCP just put out warnings to provincial and local governments about the coming storm that Evergrande’s default might set off—emphasis on might. The CCP is apparently not going to bail Evergrande out this time. Civil unrest, a big downturn, or possibly a crash in China real estate is feared. Could be much ado about nothing, or the start of a broader real estate downturn with global implications. Chinese investors have poured much $$$$ into US real estate markets. If they need to sell in the US to cover their China losses, there may be a noticeable impact. Same goes for Chinese owned properties across the globe. It doesn’t look like real estate Armageddon just yet, but there could be a noticeable dip in an already-spiked/over-inflated real estate market (if not the bottom falling out). 1,300 projects in over 200 Chinese cities. 200,000 employees. Other financial industry folks think the CCP will ultimately have to takeover Evergrande to prevent much carnage and make it a state-owned company. Japan investors aren’t too worried at this point with the Nikkei on the rise in spite of the news.