China Evergrande Misses Bond Payments

Discussion in 'West Mall' started by Chop, Sep 23, 2021.

  1. Chop

    Chop 5,000+ Posts

    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.
    Last edited: Sep 24, 2021
  2. Seattle Husker

    Seattle Husker 10,000+ Posts

    Yep, just another sign of the global economy. Evergrande was China's largest real estate development company. This has been described as China's Lehman Brothers.

    So far the market impact has been only a small correction.

    Unlike the US financial collapse where our bank execs made out like robber barrons I'm fairly confident the execs at Evergrande may fear the government will make them disappear into their prison system.if
  3. Chop

    Chop 5,000+ Posts

  4. Chop

    Chop 5,000+ Posts

    "Everything under heaven is in utter chaos; the situation is excellent."
    Chairman Mao Zedong (Founder and Chairman of the CCP, and the biggest killer in world history; the murderous darling of the Left)

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    Last edited: Sep 24, 2021
  5. Monahorns

    Monahorns 5,000+ Posts

    Least surprising news I can imagine. A big corporation involved in China's capital destruction. At some point economics catches up.
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  6. LousianaHorn

    LousianaHorn Kabong

    Stalin was a real killer also, he damn near killed as many Russians as the Krauts did during WWII.
  7. AC

    AC 2,500+ Posts

    Which is why America is where Germany was circa 1938, maybe earlier.
  8. Chop

    Chop 5,000+ Posts

    Hong Kong’s “Market Misconduct Tribunal” didn’t do a thing about Evergrande. Instead, they BANNED short seller Andrew Left from trading in the Hong Kong markets after Left wrote a report highly critical of Evergrande a number of years ago. I bet Andrew Left is having one of those “I told you so” moments now….

    What kind of markets does China really have if financial industry players are banned from the markets for publishing critical articles about a company?

    Also, those who blindly oppose short selling—take note. Hint—the shorts will generally flush out a crappy company long before the regulators, big institutions, or the general trading public.
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    Last edited: Sep 25, 2021
  9. Monahorns

    Monahorns 5,000+ Posts

    It's basically a fascist system. Pseudo-private.
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