Evergrande...

[Justin Passing]

Well this one https://www.abc.net.au/news/2021-09-21/china-property-bust-evergrande/100472190 says properties were sold off at big discounts.
Some properties. That made the ones with prices held high, stop selling.
The big property boom in China is dead, that market isn't there any more. They really are demolishing blocks which aren't worth finishing.
So, the point, I think is that Evergrande isn't getting money, and they owe a ton and their creditors and investors aren't going to get their money. That's hurting a lot of people.
China gov says it's going to stop the contagion spreading to other sectors. So the fiasco won't have happened? A kind of gaslighting. Well, they are good at lying.

It would all be different if the top brass in the party had money at risk. But that would be very capitalisty, so couldn't possibly happen.

 

[SirGalahad]

It would all be different if the top brass in the party had money at risk. But that would be very capitalisty, so couldn't possibly happen.

Boggles the mind.

 

[IT Minion]

It would all be different if the top brass in the party had money at risk. But that would be very capitalisty, so couldn't possibly happen.

No one has ever been able to show that having skin in the game has ever improved decision making. Long term capital management for example.

 

[fillyboy]

Global financial crash fears after Chinese giant Evergrande miss another payment (msn.com)

 

[^woody^]

It's been revealed that the the Apple snake Tim Cook struck a deal with the Communist dictatorship in 2016 worth $275 billion, to keep Apple sales and technology in China.

Money talks and China and their business model can't fail (the regime wont let it fail), as that will hit western shareholders and company profits and in turn China's expansion plans for world domination.

 

[fillyboy]

POP.

 

[JohnD]

(the regime wont let it fail)

an optimistic view.

 

[ajohn]

I suspect just like earlier smoking guns concerning china's debt it wont have much effect on china itself.

They could cause serious economic chaos but wont because it will ruin their markets.
https://www.investopedia.com/articles/investing/033115/10-countries-biggest-forex-reserves.asp

The Japanese crash did a lot didn't it They had been buying USD's to maintain it's value as it was a major market for them.

The wests property prices - I do really wonder. Lots rest on it's backs.

 

[JohnD]

"Evergrande shares suspended after report it was told to destroy buildings

Chinese media outlet says authorities demanded indebted property company demolish residential complex"


https://www.ft.com/content/fc49ae99-9fe5-494e-a2ae-a05be25eb309

"Trading of Evergrande Group shares was suspended in Hong Kong on Monday, days after Chinese media reported that the indebted property developer would be forced to demolish a residential development in the southern province of Hainan.

The company, which has been at the centre of a sector-wide crisis in the country for months, disclosed in a filing to the Hong Kong stock exchange that the halt was “pending the release . . . of an announcement containing inside information”. The company did not add further details.

Evergrande missed a series of bond payments from September but had previously transferred the money owed before the 30-day grace periods ended. It was formally declared to have defaulted on its debts in December by rating agency Fitch after it failed to transfer funds due at the end of one such grace period."