Chinese developer Evergrande files for US bankruptcy protection

[beijingwalker]

no such thing as private company in CCP land.

You know nothing about China, do you?

 

[CIA Mole]

US bank run victims were bailed out in 3 days. In China, many have been waiting a year | CNN Business

amp.cnn.com

lol trying to pretend china didnt have bank issues

Clashes after hundreds attend China bank protest - BBC News

Clashes break out after depositors angry at banks freezing nearly $6bn in funds hold a rare protest.

www.bbc.com

 

[ProudThamizhan]

You know nothing about China, do you?

don't selectively quote part of what I wrote. How do you answer for Ali Baba? they are private yet Xi was able to just ruin it. show some character

 

[RealDeal]

China has built dozens of large skyscrapers and hundreds of apartments in even the smallest of towns with barely any population, this was bound to happen someday. They will literally have to demolish thousands of empty buildings to bring up the property market, like how farmers throw away or burn crops during a glut.

 

[beijingwalker]

China has built dozens of large skyscrapers and hundreds of apartments in even the smallest of towns with barely any population, this was bound to happen someday. They will literally have to demolish thousands of empty buildings to bring up the property market, like how farmers throw away or burn crops during a glut.

Lol, of course , like this famous one

Night walk in "China's Largest Desert Ghost Town" ORDOS, Inner Mongolia, N. China

ORDOS, China -- Kangbashi, a town in the middle of barren Inner Mongolia deserts, once found itself stuck with rows of newly built-but-vacant apartment buildings, earning a nationwide reputation as a "guicheng", or ghost town. The first reports that labeled Ordos’ Kangbashi district a “ghost...

pdf.defence.pk

5 years ago some muck raking foreign reporter found a "ghost subway station" in China, it went viral overnight, how is it now?

5 years ago some muck raking foreign reporter found a "ghost subway station" in China and it became an instant online sensation across the globe after being posted on foreign social media. 5 years have passed and how this "ghost subway station" looks today?

pdf.defence.pk

 

[nahtanbob]

chinese do have a soft corner for property

 

[epebble]

Japan doesn't have a domestic market while China is the world biggest one, companies can be super successful and can also fail no matter how big they are. Beijing housing price doesn't come down the slightest, the demand is still super strong, don't forget, most cities in China have restrictive policies forbidding non locals to buy houses. if those policies were removed, housing price will go through the ceilings, but of course that is the last thing the general population want to see. the government has been strugging for decades to push the housing price down to within a manageable range.

Even with the largest domestic market by far in the world, U.S. debt crisis in 2008 was very impactful. The way this debt crisis may unfold, if we use U.S. framework, with these property price collapse, many banks will go down. With property and bank sectors in crisis, stock market may go down. By now, all the three may end up causing a recession. Approximately, this is how Japan story unfolded in the '90s.

For example, in China, already Zhongrong International Trust has missed payments. After that Zhongzhi Enterprise Group is expected to go under. Evergrande is like Bear Stearns. Zhongrong and Zhongzhi are the Lehman brothers.

Investors Fear a Financial Contagion in China

Troubles at a big trust company are making investors worry about fallout from the country’s slumping property sector.

www.wsj.com

 

[beijingwalker]

Even with the largest domestic market by far in the world, U.S. debt crisis in 2008 was very impactful. The way this debt cris may unfold, if we use U.S. framework, with these property price collapse, many banks will go down. With property and bank sectors in crisis, stock market may go down. By now, all the three may end up causing a recession. Approximately, this is how Japan story unfolded in the '90s.

For example, in China, already Zhongrong International Trust has missed payments. After that Zhongzhi Enterprise Group is expected to go under. Evergrande is like Bear Stearns. Zhongrong and Zhongzhi are the Lehman brothers.

Investors Fear a Financial Contagion in China

Troubles at a big trust company are making investors worry about fallout from the country’s slumping property sector.

www.wsj.com

You just can't compare capitalist countries like US and Japan with China, all big banks and business in China are owned by the government, the debts owed are also the debts owned, it's like your left pocket owes money to your right pocket, the government has a lot of tools to leverage. in 2008 Beijing's housing price really did crash, it's felt strongly by everyone, but this time, no one feels anything, the housing price in Beijing remains unchanged, this makes this year very different from 2008.

 

[Hamartia Antidote]

3 US banks went bankrupt last year,

yes, and multiple threads were created in the Americas forum about it even though nobody ever heard of those banks.

Like try and name two of those three...

what's so speial for a private real estate company to go bankrupt?

True, unlike those 3 private US banks there is nothing special about any Chinese company. In fact even your government isn't special either.

I guess we shouldn't make them think they are.
Just faithfully report things about American companies.

 

[beijingwalker]

True, there is nothing special about any Chinese company. I guess they just have big heads.

Evergrande is known for suspicious dealings for decades, I m pretty surprised that it had held on this long.

 

[epebble]

Evergrande is known for suspicious dealings for decades, I m pretty surprised that it had held on this long.

What is your opinion of Zhongrong International Trust and Zhongzhi Enterprise Group? Are they also dodgy house of cards waiting to blow up?

 

[ProudThamizhan]

You just can't compare capitalist countries like US and Japan with China, all big banks and business in China are owned by the government, the debts owed are also the debts owned, it's like your left pocket owes money to your right pocket, the government has a lot of tools to leverage. in 2008 Beijing's housing price really did crash, it's felt strongly by everyone, but this time, no one feels anything, the housing price in Beijing remains unchanged, this makes this year very different from 2008.

and just a couple of posts ago you were asking "so what if a private company collapses" (paraphrasing). so let me teach you something about your country: there is no such thing as a private company. there is no such thing as a private person. CCP owns you, and yours.

3 US banks went bankrupt last year, what's so speial for a private real estate company to go bankrupt?

 

[StraightEdge]

I hope CPC doesn't bailout the property developers, 1 thing I hate most is govt bailing out large corporates after they take in billions/trillions of debt and then unable to pay them. Let them fail. From what I hear home owners are protected by Chinese laws, mostly the lenders might be effected.

BTW, the Chinese property market is till too hot, prices should reduce, a lot. I see lot of speculation in Chinese real estate.

 

[jhungary]

3 US banks went bankrupt last year, what's so speial for a private real estate company to go bankrupt?

bank worth nothing in itself, it offer loan value, the value they don't actually have in their bank in term of asset, which is the major reason why these bank gone busted.

On the other hand, even with these loan limit, Evergrande have debt than all three bank line of credit and asset combined

Evergrande owe 340 billion dollars.

https://edition.cnn.com/2023/08/17/business/evergrande-files-for-bankruptcy/index.html

While the 3 banks asset combine is about $322 billion

Silicon Valley bank had around 209 billion asset

Silicon Valley Bank collapse explained in graphics

SVB didn't have cash to cover customer withdrawals when their investments tanked. This is how it all went down. 📉

www.usatoday.com

Silvergate had around 3.8 billion by the time they went busted

Anatomy of the SVB, Silvergate, and Signature bank collapse

Signature Bank Stock was impacted by the banking sector's downturn, as many witnessed a bloodbath, including Silicon Valley Bank and Silvergate (SI).

vestedfinance.com

While Signature bank had around 110 billion assets

What Happened To Signature Bank? The Latest Bank Failure Marks Third Largest In History

Crypto lender Signature Bank became the third bank to suddenly collapse this month, following Silvergate Capital and Silicon Valley Bank, which sent shockwaves through the market.

www.forbes.com

 

[beijingwalker]

and just a couple of posts ago you were asking "so what if a private company collapses" (paraphrasing). so let me teach you something about your country: there is no such thing as a private company. there is no such thing as a private person. CCP owns you, and yours.

I said big companies, especially big banks which give out loans, but still small companies make up over half of China's GDP, you know nothing about China, do you?