BREAKING NEWS: China's Evergrande has officially defaulted

[Beast]

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.

Becos China is a great country who want the richest to share some of the wealth with the poorer or rest. Unlike high capitalism or caste system India who want to bottom people to bear the burnt and left themselves to die.

 

[Adonis]

Becos China is a great country who want the richest to share some of the wealth with the poorer or rest. Unlike high capitalism or caste system India who want to bottom people to bear the burnt and left themselves to die.

...Lol...and even more Great when it comes to gobbling up ports, airports, highways (assets) of the poor countries in the name of loan re-payment.

Notwithstanding, capitalism has it's deficiencies...but so has pseudo-communism which China adopts....

 

[patero]

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

Two payments were made but they appear to have defaulted on the third bond payment. These payments are all overdue and are subject to a thirty day grace payment which expires today. This opens the door to legal procedings.

Edit: It is not yet clear whether the interest payment on the third debt due by the end of the business day has been received or not, numerous reports indicate the payment has not been received but the situation will become clearer tomorrow.

 

[Beast]

...Lol...and even more Great when it comes to gobbling up ports, airports, highways (assets) of the poor countries in the name of loan re-payment.

Notwithstanding, capitalism has it's deficiencies...but so has pseudo-communism which China adopts....

Vietnamese are now happy with China project using China loan unlike some righteous bragging the name of democracy and freedom which bombs u only...

Thank you China

 

[MH.Yang]

...Lol...and even more Great when it comes to gobbling up ports, airports, highways (assets) of the poor countries in the name of loan re-payment.

Notwithstanding, capitalism has it's deficiencies...but so has pseudo-communism which China adopts....

We are the Communist Party, but we have never said that China is a communist country. China's full name is "the people's Republic of China". We are a Republic, not a Soviet. We are a country in the primary stage of socialism, and communism is the ultimate stage of socialism. The realization of communism requires a society with very rich materials and generally highly educated people. Now China does not have the conditions to realize communism.

 

[ziaulislam]

DMSA is preparing bankruptcy proceedings against Evergrande Group.


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The house of cards is collapsing

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

1921(infact every ****year) and every **** country where a private company is defaulting has collapsed..

Ops
Wake up call..100sof private entities with zero govt involvement or grantees default everywhere.

CCP only focus is to prevent the users being effected just like what happens in USA..

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.


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.

So what..the losers are foreign creditors who took the risk for higher payments

This isnt worth a news to begin with(other then rattling stock market breifly)..but who cares if some indian can jump for a while with joy

 

[Chhatrapati]

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.

These are individual issues but should be seen as a whole. CCP as usual screwed up in social engineering with one child policy and now they find their population falling below replacement level. People simply stopped having children despite 1,2,3 child policies.
Main reasons, it's expensive to have a child and make the child through education, and housing, a lot of them are neck deep in debt buying properties, the property prices in China have gone up too. All this trickled down to population growth stagnating and increasing number of old people.
Now that comes to education, the ones who are educated does not want to do menial jobs and prefer working in corporate sectors. This automatically means low cost labour gets hit which the govt has to insentivise by providing tax breaks, free electricity and so on. So that's why China simply cracked down on education sector, one by devaluing vocational degrees.

China students hold principal hostage in rare protest

The protests were over plans to merge colleges with "less prestigious" vocational institutes.

www.bbc.com

I think this has been since reversed then another by cracking down on paid education apps and private tutoring. They intend to make people have a more free education and reduce the expenses. Which is a good thing IMO but it's too little and too late.

 

[Adonis]

Vietnamese are now happy with China project using China loan unlike some righteous bragging the name of democracy and freedom which bombs u only...

Thank you China

Yeah Thank you China....for installing trains that do not run.

Vietnam rail debt to China comes due, but trains don’t run

The Cat Linh-Ha Dong rail line in Hanoi remains behind schedule and costs have soared.

www.rfa.org

Also on Vietnam being happy with Chinese debt trap.....other perspective.

If Laos fell into a Chinese debt trap, would it make a noise?

China’s largesse in funding infrastructure has prompted claims it is seeking leverage over poorer, indebted nations, yet Laos’ reliance on its neighbour has gone strangely unnoticed.

www.scmp.com

Vietnam’s Hidden Debts to China Expose its Political Risks

Although Vietnam’s Chinese debt burden is low compared to some of its neighbors, it is still a worry for the Communist Party mandarins in Hanoi.

thediplomat.com

China and the US: Who Has More Influence in Vietnam?

According to the latest Asian Barometer Survey, China has more influence – but a less positive image – in Vietnam compared to United States.

thediplomat.com

China–Vietnam relations - Wikipedia

en.wikipedia.org

 

[letsrock]

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.

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congrats on your new house. It looks nice but i have one question - when you sit in that balcony can you enjoy quiet ? I once lived in 11th floor i think in sydney but the moment i opened the balcony there is a heavy white noise of traffic from the highway right below/

 

[MH.Yang]

congrats on your new house. It looks nice but i have one question - when you sit in that balcony can you enjoy quiet ? I once lived in 11th floor i think in sydney but the moment i opened the balcony there is a heavy white noise of traffic from the highway right below/

My house is by the river. Next to the house is the embankment of the Xiang River and a highway along the river. There are not many cars and people. The biggest noise may come from the basketball court on the riverbank.


The Xiang River embankment which near my house:

 

[Beast]

Yeah Thank you China....for installing trains that do not run.

Vietnam rail debt to China comes due, but trains don’t run

The Cat Linh-Ha Dong rail line in Hanoi remains behind schedule and costs have soared.

www.rfa.org

Also on Vietnam being happy with Chinese debt trap.....other perspective.

If Laos fell into a Chinese debt trap, would it make a noise?

China’s largesse in funding infrastructure has prompted claims it is seeking leverage over poorer, indebted nations, yet Laos’ reliance on its neighbour has gone strangely unnoticed.

www.scmp.com

Vietnam’s Hidden Debts to China Expose its Political Risks

Although Vietnam’s Chinese debt burden is low compared to some of its neighbors, it is still a worry for the Communist Party mandarins in Hanoi.

thediplomat.com

China and the US: Who Has More Influence in Vietnam?

According to the latest Asian Barometer Survey, China has more influence – but a less positive image – in Vietnam compared to United States.

thediplomat.com

China–Vietnam relations - Wikipedia

en.wikipedia.org

Nice propaganda article from you... Each 0.50 for every u post here, right?

The train dont run in Vietnam? Maybe u are just born ytd and never read news? Then Japan build one in Ho Chin Minh City will be worst, right?

 

[MH.Yang]

congrats on your new house. It looks nice but i have one question - when you sit in that balcony can you enjoy quiet ? I once lived in 11th floor i think in sydney but the moment i opened the balcony there is a heavy white noise of traffic from the highway right below/

My house is the 4G of housing, which has just begun to be popular in China. That is not an open balcony, but a garden. China's 3G houses usually use closed balconies.

The appearance of the 4G housing is like this:

 

[Brainsucker]

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.

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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?

Whut, then who will pay get ya wig split wages then, if us pension money is in danger like now?

 

[King Julien]

$300 billion worth of liabilities

Evergrande Is Courting Default Again as $148 Million Payment Comes Due

The embattled Chinese developer is facing another payment of $255 million in December.

www.google.com

 

[Adonis]

Nice propaganda article from you... Each 0.50 for every u post here, right?

The train dont run in Vietnam? Maybe u are just born ytd and never read news? Then Japan build one in Ho Chin Minh City will be worst, right?

Propaganda? Isn't that something in which Global Times is leagues apart than others......Yeah each fetching 0.50 for every post....still far less than what you get for yours....