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China Has A Debt Problem Three Times Larger Than Evergrande

beijingwalker

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One thing that China's debt is very different from other countries is China owes most of her debt to China, China owns most of China's debt.
Because the biggest companies, factories and business agencies in China are mostly all Chinese state owned, so China's debt is also China's assets.
 
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X-ray Papa

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One thing that China's debt is very different from other countries is China owes most of her debt to China, China owns most of China's debt.
Because the biggest companies, facctories and business agencies in China are mostly Chinese state owned, so China's debt is also China's assets.
So will China get back the money they lend or not
 

VkdIndian

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So will China get back the money they lend or not
As per the post above -
If China defaults on loan to China then China can choose to forego the loan to China or China might decide to pay off the debt to China or China could decide to put its foot down and decide to seize the assets of China.

China all the way.
No sweat.
 

FairAndUnbiased

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Yep China Railways is in trouble with merely +12% revenue growth at 120 billion USD (767 billion RMB), 13% profit growth at 3 billion USD (20 billion RMB) every year and has merely a debt:equity ratio of 0.48 (more value than debt). Institutional creditors rate China Railways as an A investment. But what do they know, a Youtube video said... this is worse than Evergrande.

Meanwhile Turkey is doing far better because there is clearly no debt or currency crisis in Turkey. Turkish railroads are very healthy at a net income of -1.5 billion liras in losses (which isn't so bad, since massively devaluing currency = lower losses). Turkey wins again.

Jai Turkiye!
 

xuxu1457

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Yep China Railways is in trouble with merely +12% revenue growth at 120 billion USD (767 billion RMB), 13% profit growth at 3 billion USD (20 billion RMB) every year and has merely a debt:equity ratio of 0.48 (more value than debt). Institutional creditors rate China Railways as an A investment. But what do they know, a Youtube video said... this is worse than Evergrande.

Meanwhile Turkey is doing far better because there is clearly no debt or currency crisis in Turkey. Turkish railroads are very healthy at a net income of -1.5 billion liras in losses (which isn't so bad, since massively devaluing currency = lower losses). Turkey wins again.

Jai Turkiye!

The end-2022 consumer price index estimate has been raised to 23.2%, Central Bank of the Republic of Turkey (CBRT) Governor Şahap Kavcıoğlu told a meeting in the capital Ankara to present the bank’s first quarterly inflation report of the year.

In its last report in October, the central bank forecast inflation would ease to 11.8% by the end of 2022. The annual inflation rate stood at 36.08% in December, its highest level in 19 years.

Screenshot_20220129_193351.jpg

China Railway Corporation has an income of 1.1 trillion, total assets of 8.3 trillion and liabilities of 5.5 trillion.
 

+4vsgorillas-Apebane

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Infrastructure is not required to generate direct revenue, it's there to facilitate economic growth and give people the opportunity to expand work and business opportunities/productivity.

The cost of NOT having a good and fast rail would far outweigh the cost of building one. Just imagine waiting for hours to travel a miniscule distance and having to ride on the roof of the carriages?
 

Norwegian

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Most of Japanese debt is also in their own currency. This however didn't lead to any economic growth since their property bubble burst two decades ago
One thing that China's debt is very different from other countries is China owes most of her debt to China, China owns most of China's debt.
Because the biggest companies, factories and business agencies in China are mostly all Chinese state owned, so China's debt is also China's assets.

Yep China Railways is in trouble with merely +12% revenue growth at 120 billion USD (767 billion RMB), 13% profit growth at 3 billion USD (20 billion RMB) every year and has merely a debt:equity ratio of 0.48 (more value than debt). Institutional creditors rate China Railways as an A investment. But what do they know, a Youtube video said... this is worse than Evergrande.

Meanwhile Turkey is doing far better because there is clearly no debt or currency crisis in Turkey. Turkish railroads are very healthy at a net income of -1.5 billion liras in losses (which isn't so bad, since massively devaluing currency = lower losses). Turkey wins again.

Jai Turkiye!
 

kankan326

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So will China get back the money they lend or not
As per the post above -
If China defaults on loan to China then China can choose to forego the loan to China or China might decide to pay off the debt to China or China could decide to put its foot down and decide to seize the assets of China.

China all the way.
No sweat.
China's state owned companies borrowed money from state owned banks. The infrastructure investment will help economic development and in turn increases government revenue. Overall it's profitable for China
 
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aziqbal

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China's state owned companies borrowed money from state owned banks. The infrastructure investment will help economic development and in turn increases government revenue. Overall it's profitable for China

more fake news you have zero understanding of economics

borrowing more money from state bank means higher interest rates means higher cost of living means more inflation

Chinas average inflation rate has been over 5% over last 20 years one of the highest in the world

I guess state owned media dont report, huge government over Evergrande is happening

Screen Shot 2022-01-29 at 13.29.43.png
 

kankan326

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more fake news you have zero understanding of economics

borrowing more money from state bank means higher interest rates means higher cost of living means more inflation

Chinas average inflation rate has been over 5% over last 20 years one of the highest in the world

I guess state owned media dont report, huge government over Evergrande is happening

View attachment 811913
But the solid fact is Chinese are enjoying much better living standard than 20 years or 10 years ago.
 

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