BREAKING NEWS: China's Evergrande has officially defaulted

[Get Ya Wig Split]

DMSA is preparing bankruptcy proceedings against Evergrande Group.

The house of cards is collapsing

https://twitter.com/x/status/1458515118388649986

https://twitter.com/x/status/1458505156576829442

 

[Flight of falcon]

Hahahahaha China collapsing??? Really . It defies logic on so many levels that I choose to stay quiet and let likes of you celebrate. By the way don’t forget to pay the loan back for which you have no money to pay back :

https://www.google.ca/amp/s/amp.scmp.com/economy/china-economy/article/3112343/us-debt-china-how-big-it-and-why-it-important

 

[INS_Vikrant]

Why CCP has suddenly turned gun on its own Private Industries first tech, edutech, gaming, online cabs, and now real estate. Due to their policy another real estate giant Kaisa is nearing bankruptcy.

 

[fallstuff]

What were the regulators doing when these companies were getting in debt up to their eyeballs ?

 

[siegecrossbow]

Nope.

China Evergrande meets another interest payment deadline. (Published 2021)

Evergrande had three bonds for which grace periods for interest payments were set to expire on Wednesday.

www.nytimes.com

 

[fitpOsitive]

DMSA is preparing bankruptcy proceedings against Evergrande Group.


View attachment 792140



The house of cards is collapsing

https://twitter.com/x/status/1458515118388649986

https://twitter.com/x/status/1458505156576829442

@WebMaster the emoji for Lakh di Lanat should also be included here in editing section.

 

[KaiserX]

Why CCP has suddenly turned gun on its own Private Industries first tech, edutech, gaming, online cabs, and now real estate. Due to their policy another real estate giant Kaisa is nearing bankruptcy.

Regulations in China are far more extensive than any other country in the world. They will be able to effectively contain the contamination from spreading to the real estate sector. There might be a major slowdown but that is well expected with such growth. More than likely growth in real estate will plateau... I see the same happening in the US/Europe as well.

 

[Trango Towers]

The implications could be global and its more than likely there are many others about to default. Markets could tumble globally

 

[Pakistan Space Agency]

I just hope the fallout from this doesn't hit Pakistan.

I remember the 2008 financial / banking meltdown in the US and how that impacted Pakistan economically.

 

[Trango Towers]

I just hope the fallout from this doesn't hit Pakistan.

I remember the 2008 financial / banking meltdown in the US and how that impacted Pakistan economically.

All the cryto are crashing

 

[Globenim]

Officialy

A random noname company nobody ever heard of declared that and they cite the possibly most unreliable and untrustworthy source next to Americas Twitter trolls the U.S. regimes pet banks anti-China propaganda , as "confirmation" of their claims, since their claims are just "infered" based on their "studies" not actual hard facts.

Nothing about that is "official".

Some random tiny noname company claiming to be invested in bonds related to Evergrande, claimed they believe interests were not paid in due time thus technically "defaulted" on a loan payment, and declared to take legal measures. In reality interests were paid several times but speculators not prioritized like in America and but they "insist" that the company somehow didn't "really" do it in general. Everyone who isnt living in a U.S. regime propaganda bubble and fantasy world, knows China has been forcing Evergrande to pay off its debts for years. So much of it is going to the "small" people because its China, wheras in the U.S. dominated West, Western speculators have little to fear about being left on the short end since debts are pushed onto the small people first while big speculators and CEOs get billions and millions of bonuses and payouts even as a U.S. company is filling out its bancrupcy forms and small workers and small third party business are sitting on unpaid wages and unpaid bills. With these legal measures they are trying to size assets as foreign speculators.

Americas paid troll armies, bussy do distract their domestic population from the U.S. regime taking on hundred times the debt as Evergrande ever had, are trying to conflate that with a bancrupcy.

 

[MH.Yang]

1, Evergrande's crisis was initiated by the Chinese govt. In August 2020, the Chinese govt required the asset liability ratio of real estate companies to be less than 70%. This led Evergrande to sell assets urgently and reduce the asset liability ratio.
2, The Chinese govt banned Evergrande from listing and raised funds through the stock A market to reduce the debt ratio. This has exacerbated Evergrande's crisis.
3. The Chinese govt is cracking down on pseudo technology companies such as the real estate industry and DiDi, and guiding capital into the manufacturing industry. Moreover, the Chinese govt suppressed Chinese house prices by means of purchase restrictions and so on. This made Evergrande's asset sale not smooth.
4, By August 2021, Evergrande has 1.95 trillion CNY of debt, but they have 2.3 trillion CNY of assets. If they can sell 320 billion CNY of assets at the normal price, they can tide over the crisis.



Do you know why the Chinese govt refused to save Evergrande, even prevented Evergrande from listing and lending? And why western media keep sending articles ask China to save Evergrande?


According to Chinese law, the order in which the bankrupt company pays off its debts is as follows:
1st. Employees' wages.
2nd. Taxes,
3rd. Bank loans,
4th. Customer rights and interests.
5th. Debts of domestic enterprises.
6th. Debts of foreign enterprises.
7th. Shareholders' equity.


With regard to Evergrande's corporate debt, the top eight are Wall Street companies, including the US Department of defense pension fund and the federal pension fund. No. 9 is the Japanese Pension Fund.
Now it is not the Chinese who are most afraid of Evergrande's bankruptcy.

Now there is indeed a card house to fall. Let's see which card house it is.

Inflation, goods shortage, now is the financial storm. Guess which country it is?

 

[Trango Towers]

I just hope the fallout from this doesn't hit Pakistan.

I remember the 2008 financial / banking meltdown in the US and how that impacted Pakistan economically.

Global economies are well connected and a ripple in China will certainly have a global impact. Evergrande is such a big company with tentacles everywhere

 

[MH.Yang]

The new house I bought will be delivered next year. The name of the community is: Evergrande Xiangjin Bay. It is the project of Evergrande.

 

[cloud4000]

Let's end this charade that China is communist, socialist, or socialist with "Chinese characteristics." It should not have a) private companies, b) that they are allowed to fail. c) bubbles like Evergrande don't happen in communist economies.

It will be interesting to see how the creditors will ultimately fare from it all. How much of a haircut will bondholders have to take. If you are a vulture fund, this could be a good opportunity to buy.

What is getting underreported, however, is the weak oversight of Evergrande's financials. They were reporting solid numbers but ultimate results reflect it was nothing more than shoddy bookkeeping. It's another Enron, which was given a clean financial chit by its auditors.

Why CCP has suddenly turned gun on its own Private Industries first tech, edutech, gaming, online cabs, and now real estate. Due to their policy another real estate giant Kaisa is nearing bankruptcy.

The same reason the US government is going after FANG! They are too powerful, too influential, and answerable to no one. The difference here is that China can challenge these companies without such complicated -- and essentially Western ideas -- like due process.