Evergrande Financial Panic - Corona is not the only Contagion China is exporting

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Speaking of foreign property, couldn't this mess reduce house prices in the west if some Chinese firms need to quickly liquidate foreign assets to keep afloat?
 
mindlessobserver said:
Buy did they keep that money on hand to pay off creditors? Nooooooope. It got dumped to maintain operations. Life support for a corpse.
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i wonder if Evergrande is hoping that the chinese government will bail them out like our government did in the 2008 financial crisis. that was such a retard move, if i was in charge, i would of decided to split every company that was bailed out, into several smaller ones.
now is china retarded enough to bail evergrande out? does china have some Changsteins in power that could persuade the others for that motion?
Sped Xing said:
Renting a house for 70 years, at the pleasure of the government, is a nightmare.
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it is pretty cucked, my guess is you pay a mortgage and property taxes like normal, but when that 70 years is up, you have to file to renew the lease, you might not even have to pay anything, the fear is if they deny your renewal. though the amount of time for that hasn't passed so we can see how it actually works. 50 years ago, china was still transitioning out of their Mao policies. 70 years ago, Mao was in charge.
 
Whether massuh Xi gives you your house back or not, the idea that the government gives property rights, rather than recognizes and protects them, is thoroughly cucked.

Not that it isn't a common cuckery among Burgers.
 
wtfNeedSignUp said:
Speaking of foreign property, couldn't this mess reduce house prices in the west if some Chinese firms need to quickly liquidate foreign assets to keep afloat?
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I'm worrying the amount of investors wanting to evacuate the Chinese market would counterract Chinese firms selling their Western assets. Western assets are more valuable anyway to them since they're much more stable and reliable than China's assets. That's why China has recently been slapping down decrees to limit capital flight like yet another BTC ban.
Sped Xing said:
Whether massuh Xi gives you your house back or not, the idea that the government gives property rights, rather than recognizes and protects them, is thoroughly cucked.
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Theoretically, the government can eminent domain you out of your property as they please. In practice, this isn't used too often, but I think the past two years show that if the government feels like it, and anything remotely resembling a legal mechanism exists, they can push and push and push and they will be cheered on as "doing the right thing the experts say is necessary."

In a way, we aren't too different than China, because at least China tells you that your property rights can be revoked at any time and that elections exist to affirm the ruling party's rightful position.
 
Save the Loli said:
I'm worrying the amount of investors wanting to evacuate the Chinese market would counterract Chinese firms selling their Western assets. Western assets are more valuable anyway to them since they're much more stable and reliable than China's assets. That's why China has recently been slapping down decrees to limit capital flight like yet another BTC ban.

Theoretically, the government can eminent domain you out of your property as they please. In practice, this isn't used too often, but I think the past two years show that if the government feels like it, and anything remotely resembling a legal mechanism exists, they can push and push and push and they will be cheered on as "doing the right thing the experts say is necessary."

In a way, we aren't too different than China, because at least China tells you that your property rights can be revoked at any time and that elections exist to affirm the ruling party's rightful position.
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America is a cuck who cries in the corner. China is a cuck who grins and jacks it.
 
Michael Janke said:
i wonder if Evergrande is hoping that the chinese government will bail them out like our government did in the 2008 financial crisis. that was such an exceptional individual move, if i was in charge, i would of decided to split every company that was bailed out, into several smaller ones.
now is china exceptional enough to bail evergrande out? does china have some Changsteins in power that could persuade the others for that motion?

it is pretty cucked, my guess is you pay a mortgage and property taxes like normal, but when that 70 years is up, you have to file to renew the lease, you might not even have to pay anything, the fear is if they deny your renewal. though the amount of time for that hasn't passed so we can see how it actually works. 50 years ago, china was still transitioning out of their Mao policies. 70 years ago, Mao was in charge.
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I had a friend make the same argument. I don't think they can.
1. Inflation would sky rocket bailing out the real estate companies.
2. They already had smaller companies declare bankruptcy. Stepping in now would look like playing favorites. Nothing better than showing everyone some people are more equal than others.

They are probably hoping to ride this out.
 
Zaryiu2 said:
How will this affect Canada?
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If anything this will motivate the rich over in China to skip over to Canada, Australia and other countries that are already struggling with them buying everything that isn't a crack house in the market lol!

However the coof is still restricting their ability to move over, in spite of China's already colossal capital flight problem. Once things normalize we can expect them to resume their activities!
 
RainwaterDrop said:
If anything this will motivate the rich over in China to skip over to Canada, Australia and other countries that are already struggling with them buying everything that isn't a crack house in the market lol!

However the coof is still restricting their ability to move over, in spite of China's already colossal capital flight problem. Once things normalize we can expect them to resume their activities!
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For fuck's sake
 
Zaryiu2 said:
For fuck's sake
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It could also go the other way. It might turn out that most of the Chinese people with money in foreign assets are the 'big boy bagholders' that need to quickly liquidate stuff that they own everywhere to appease the CCP so that people they love that are still trapped on the mainland aren't 'disappeared'. I don't have a lot of faith in this outcome being our current timeline, but who knows? This whole shitshow started because China can't be honest about anything, so who knows how bad/good it really is? All bets are off.

I'll reiterate that if you live in Canada or Australia and you're planning to buy a house anytime in the next 10 years, then you probably want to be watching the property markets and this Evergrande shit with vigor. All signs are pointing to there being a lot of movement by affluent Chinese to buy or sell their foreign assets. And depending on how much the real estate prices crash due to (and alongside) this, then your best time to buy a house will either be "pretty fucking soon" or "not for a long-ass time".
 
Knight of the Rope said:
I'll reiterate that if you live in Canada or Australia and you're planning to buy a house anytime in the next 10 years, then you probably want to be watching the property markets and this Evergrande shit with vigor. All signs are pointing to there being a lot of movement by affluent Chinese to buy or sell their foreign assets. And depending on how much the real estate prices crash due to (and alongside) this, then your best time to buy a house will either be "pretty fucking soon" or "not for a long-ass time".
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The correct answer is: both.
 
Zaryiu2 said:
How will this affect Canada?
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Depends on if Justin Trudeau makes good on his stolen promise of banning foreigners from buying houses for 2 years. That's a gamble though because Justin Trudeau has made a habit of appropriating popular policies from other parties with no legitimate plan to actually do so. Or in true Canadian fashion: there will be a council of regulators tasked with figuring out how to best implement such a policy and how to handle it long term, but no plan will ever materialize.
 
Kanuckski said:
Depends on if Justin Trudeau makes good on his stolen promise of banning foreigners from buying houses for 2 years. That's a gamble though because Justin Trudeau has made a habit of appropriating popular policies from other parties with no legitimate plan to actually do so. Or in true Canadian fashion: there will be a council of regulators tasked with figuring out how to best implement such a policy and how to handle it long term, but no plan will ever materialize.
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isn't it real easy as the canadian prime minister to ban foreigners from buying land in canada?
in america, the president could probably just issue an executive order. obviously anyone who currently owns land is grandfathered in most likely
seems easy enough, as long as it doesn't infringe on the rights of citizens and residents within the country.
you could obviously add stipulations, like non citizens residing in the country can own a certain amount of land.
but people not residing in the country at all can't
 
Kanuckski said:
Depends on if Justin Trudeau makes good on his stolen promise of banning foreigners from buying houses for 2 years. That's a gamble though because Justin Trudeau has made a habit of appropriating popular policies from other parties with no legitimate plan to actually do so. Or in true Canadian fashion: there will be a council of regulators tasked with figuring out how to best implement such a policy and how to handle it long term, but no plan will ever materialize.
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Yeah he won't, Liberals are too invested in the immigration gravy train to suddenly turn the taps off for one of its most lucrative aspects. At best they'll pay it some lip service to keep the suburban soccer moms in place, but it's DOA. Makes me MATI as well, something like this is sorely needed in Canada, and frankly should go further: indefinite moratorium and make it retroactive. You don't have Canadian citizenship (no permanent residency shenanigans)? Sell your property and get the fuck out. Oh and have it apply to commercial property as well.

Michael Janke said:
isn't it real easy as the canadian prime minister to ban foreigners from buying land in canada?
in america, the president could probably just issue an executive order. obviously anyone who currently owns land is grandfathered in most likely
seems easy enough, as long as it doesn't infringe on the rights of citizens and residents within the country.
you could obviously add stipulations, like non citizens residing in the country can own a certain amount of land.
but people not residing in the country at all can't
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It's as easy as getting a majority government (or opposition support) and passing such a law through Parliament. The PM cannot make such a unilateral interpretation like the US President with executive orders, it would require a piece of federal legislation.
 
Michael Janke said:
obviously anyone who currently owns land is grandfathered in most likely
seems easy enough, as long as it doesn't infringe on the rights of citizens and residents within the country.
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What about their right to sell their property?
 
Michael Janke said:
isn't it real easy as the canadian prime minister to ban foreigners from buying land in canada?
in america, the president could probably just issue an executive order. obviously anyone who currently owns land is grandfathered in most likely
seems easy enough, as long as it doesn't infringe on the rights of citizens and residents within the country.
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In America, that would infringe on property developers and owner's rights to sell to foreigners so there's a constitutional challenge. It probably could be done in the name of national security, like how citizens of Eastern Bloc nations were banned from travel to about 1/3 of the country during the 50s/early 60s, but even that could be challenging to get through. Today, all you need is one federal judge and your executive order is suspended. Just ask President Brandon.

To my knowledge, Canada is really federal so a lot would need to be done on a province by province basis. Maybe that's a good thing. Ban the Chinese from everywhere except Nunavut, let them hang with the Eskimos or go camping on some nice Indian rez.
 
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