Evergrande: The Beginning of China’s Economic Collapse?

Whether you're a working stiff or a business owner yourself, this is the place to discuss all aspects of financing your drinking habit ;-)

NO BUSINESS SALES HERE PLEASE, WE HAVE A SECTION FOR THAT IN THE CLASSIFIEDS.
mouytiet
Expatriate
Posts: 202
Joined: Thu Jan 31, 2019 11:29 pm
Reputation: 102
Cook Islands

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by mouytiet »

Its a slow controled death to stop seen decent and misery imposed whats a 143 million on 300 billion .paid on last day as will be next time.keep peaple shitting themselves and minipulate markets. Who is second biggest holder of Bitcoin oh yes its China.
User avatar
SternAAlbifrons
Expatriate
Posts: 5752
Joined: Sat Mar 23, 2019 11:31 am
Reputation: 3424
Location: Gilligan's Island
Pitcairn Island

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by SternAAlbifrons »

China Evergrande dodges default again, but where is the money coming from?

China Evergrande Group has been lurching from one debt deadline to another and has so far managed to avoid default, but where is the money coming from?

China Evergrande Group once again averted a default with a last-minute bond payment on Wednesday
It's the third time in the past month the company has paid up dangerously close to a deadline.

Weiping He, a researcher in financial markets regulation and company law from Monash University, said it was likely that the Chinese government was working behind the scenes to help Evergrande meet the payment deadlines.

"Local financial institutions could be helping, and that is the hand of the government at work," she said.
"Local companies, which are state-owned or otherwise privately owned companies would also be encouraged by the government to come in to assist individual housing projects or subsidiaries to ensure that housing projects are delivered."

Reuters has reported the Chinese Communist Party (CCP) has been telling government owned firms and state-backed property developers such as China Vanke to buy some of Evergrande's assets.

The CCP is said to be unlikely to directly intervene in the form of a bailout.
Bankers and analysts told Reuters that Beijing would stand firm on policies to curb excess borrowing by property developers, even as it makes financing tweaks amid an industry liquidity crunch.

Ms He does not believe Evergrande would formally default, with the most likely outcome a gradual restructure.
"It will still survive. Evergrande's Investors and creditors are probably last on the the government's priority list," she said.

"The government cares about the people who have paid lots of money to buy residential apartments from the company to live in.
"That's the aim of the government. It is a stability issue."

Evergrande's next payment deadline is on December 28, when it's due to cough up more than $255 million ($A350 million) in coupon payments.

abbreviated ^^, in full >>
https://www.abc.net.au/news/2021-11-12/ ... /100614948
User avatar
IraHayes
Expatriate
Posts: 2676
Joined: Sat May 17, 2014 7:38 am
Reputation: 2030
Marshall Islands

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by IraHayes »

Tommie wrote: Fri Nov 12, 2021 3:48 pm Chinese authorities have a message for Hui Ka Yan, the founder of Evergrande: The buck stops with you.

Chinese authorities issued a directive for him to use his personal wealth to help pay off some of the sprawling property developer’s debt, Bloomberg reported. The order came after Evergrande missed a coupon payment for a dollar bond on Sept. 23.

Hui Ka Yan is worth an estimated $7.8B
And as if by magic, the bond payment appeared.
User avatar
IraHayes
Expatriate
Posts: 2676
Joined: Sat May 17, 2014 7:38 am
Reputation: 2030
Marshall Islands

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by IraHayes »

IraHayes wrote: Fri Nov 12, 2021 6:06 pm
Tommie wrote: Fri Nov 12, 2021 3:48 pm Chinese authorities have a message for Hui Ka Yan, the founder of Evergrande: The buck stops with you.

Chinese authorities issued a directive for him to use his personal wealth to help pay off some of the sprawling property developer’s debt, Bloomberg reported. The order came after Evergrande missed a coupon payment for a dollar bond on Sept. 23.

Hui Ka Yan is worth an estimated $7.8B
And as if by magic, the bond payment appeared.
Deutsche Marktscreening Agentur (DMSA) begins bankruptcy proceedings as it has not received any interest payments from Evergrande as of Wednesday, 10th Nov.
https://blockworks.co/update-evergrande ... oceedings/
User avatar
SternAAlbifrons
Expatriate
Posts: 5752
Joined: Sat Mar 23, 2019 11:31 am
Reputation: 3424
Location: Gilligan's Island
Pitcairn Island

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by SternAAlbifrons »

The Business Times
Fri Nov 12 - 3:52 pm
Shares of embattled China Evergrande Group rise to 6-week high

[HONG KONG] Shares of China Evergrande Group extended gains to as much as 16 per cent on Friday afternoon to the highest since Sept 30, after the cash-strapped developer once again averted a destabilising default with a last minute bond payment this week.

https://www.businesstimes.com.sg/stocks ... -week-high

The Business Times
Fri Nov 12 - 17:31 pm
China's real estate slump likely to be significant but contained, say economists

THE real estate slowdown in China is likely to be "significant" but "contained", but that "this relatively benign outlook is far from guaranteed", says a forecast in Oxford Economics on Friday (Nov 12).

In their baseline scenario, economists Louis Kuijis and Tommy Wu said the downturn would be "contained, due to a low stock of unsold housing, room for policy easing, continuing urbanisation and significant income growth."

https://www.businesstimes.com.sg/global ... economists

(and not to mention that Gi Gi la Ping Pong Balls is always anxious about 'internal stability'
He ordered the clamp down/ clean up the property finance sector with eyes wide open - and has since made it clear that there is no backing down.
He would not be doing that if he thought there was any chance that all Hell was going to break loose. imo)
User avatar
IraHayes
Expatriate
Posts: 2676
Joined: Sat May 17, 2014 7:38 am
Reputation: 2030
Marshall Islands

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by IraHayes »

SternAAlbifrons wrote: Sun Nov 14, 2021 6:58 pm
He ordered the clamp down/ clean up the property finance sector with eyes wide open - and has since made it clear that there is no backing down.
He would not be doing that if he thought there was any chance that all Hell was going to break loose. imo)
Oh I am with you on that point. "He" knew exactly how fcked the property sector was going to be after he implemented the controls that led to this situation. He is obviously relying on being able to clamp down hard and fast on anyone who protests to much. But no matter how much he worked out the known unknowns there is always the possibility of an event happening that he hasn't factored into his grand scheme.
I, for one, am still keeping my eye on various media outlets for tit-bits of interesting news related to all this.
User avatar
SternAAlbifrons
Expatriate
Posts: 5752
Joined: Sat Mar 23, 2019 11:31 am
Reputation: 3424
Location: Gilligan's Island
Pitcairn Island

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by SternAAlbifrons »

Yep, Ira. It's an engrossing situation indeed.

I don't doubt the blood that is going to be spilt in the property sector - but to suggest it signals "China's financial collapse" (topic heading) is ridiculous.

There is a lot of the catastrophising on this thread about China, and on other threads, that is going to lead us into a heap of shit if we really do believe it is all true.
So much of it is not imo, it is one-eyed analysis and propaganda born from irrational fear. Or hatred, and a lust for war.

I am one of the fiercest hawks here ( for SEA and Oceania) but i am not a mindless one-eyed "patriotic" fool.
ffs - we, the West have got our arse whipped all over the planet, repeatedly, because we don't seem to be able to see the enemy without blinkered, clouded eyes.

(that the main point i make in a lot of these threads - not questioning the need to prepare against China.
Hardcore does not mean sending in the aircraft carriers and green berets tomorrow. That's easy and ultimately gets us all only backwards.
It means getting our shit together, that seems to be the hard bit.
User avatar
nemo
Expatriate
Posts: 2054
Joined: Sat Jan 23, 2016 6:34 pm
Reputation: 1395
Cambodia

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by nemo »

https://www.smh.com.au/business/the-eco ... 599dj.html
China’s economy is slowing to the lows seen way back in 1990 – a price President Xi Jinping seems willing to pay to reduce its dependence on the property sector.

Beijing’s squeeze on the real estate sector will linger into next year and beyond, a development many hadn’t seen coming that has now prompted banks like Goldman Sachs, Nomura Holdings and Barclays to cut their growth forecasts in 2022 to below 5 per cent. Bar last year’s pandemic year, that would be the weakest in more than three decades.
Tommie
Expatriate
Posts: 149
Joined: Fri Jul 31, 2020 2:32 pm
Reputation: 70
Norway

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by Tommie »

Selling house and private jet for $9.7 billion in desperate rescue:

Xu Jiayin does everything in his power to keep the Evergrande fleet afloat.
Evergrande's founder Xu Jiayin sells in great style to save his heart child.
Evergrande founder and chairman Xu Jiayin has sold private assets worth 7 billion yuan ($9.7 billion) in a desperate attempt to save the damaged real estate giant, according to several Chinese media outlets.
Xu has sold several houses in Hong Kong, Guangzhou and Shenzhen, several private jets according to sources with close contact with the company.
The cash has been pumped into the company since the beginning of July and is used to maintain the basic operation of his vast business empire. The money was allegedly used to pay employees' salaries, bond yields, debt to investors and to complete projects around China.

Xu Jiayin has personally raised money to further Evergrande's existence.
He thus follows the call of the Chinese authorities who went so far as to say that he had to pay from his own pocket.

Xu was one of China's richest men before the company began struggling with its debt, with a fortune of $7.9 billion - just below $70 billion, according to Bloomberg's billionaire index.
Although the sale of personal belongings is commendable and helps in the short run, it is only a drop in the ocean to get rid of the debt rock Evergrande sits on. The company owes more than NOK 2,600 billion.
Evergrande stock rose 4.3 percent after the news and is up 9.9 percent last week. Since the New Year, the real estate giant is still down as much as 81.3 percent.
Tommie
Expatriate
Posts: 149
Joined: Fri Jul 31, 2020 2:32 pm
Reputation: 70
Norway

Re: Evergrande: The Beginning of China’s Economic Collapse?

Post by Tommie »

Something happened with the $ prefix in the translation. Sorry about that, but I am guessing that You can get the drift of the message.
Post Reply Previous topicNext topic
  • Similar Topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 77 guests