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

[Michael Janke]

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,

you'd be suprised. the interstate commerce act pulls a lot of bullshit interference in your ability to buy, produce and sell things
funnily enough, mexico actually has a law like this, foreigners aren't allowed to own land in mexico
but they can lease it.
their are a few exceptions here and there. but generally they can't
a law like this would have to be applied uniliaterally to stop the chineese from just buying all real estate in the mid west once florida california and new york is out.
i guess we could come up with 99 year leases?

 

[Super-Chevy454]

Let's add another victim of the Evergrande Financial panic, a Chinese corrupt airline from what I saw on that vlog posted by Wall Street Millenial.

 

[Vaclav]

Let's add another victim of the Evergrande Financial panic, a Chinese corrupt airline from what I saw on that vlog posted by Wall Street Millenial.
https://youtube.com/watch?v=JMC9TTsznKU

I'm guessing that a big reason for them not to bail out Evergrande is that its collapse will end up knocking over other companies perhaps greater in combined value than Evergrande itself. If they bail out Evergrande, all the other failing companies will want a bailout as well and possibly bankrupt the Chinese government. It would also completely screw their system of patronage.

 

[Michael Janke]

If they bail out Evergrande, all the other failing companies will want a bailout as well and possibly bankrupt the Chinese government. It would also completely screw their system of patronage.

makes you wonder what china plans to do with all the companies that will go bankrupt in the inevitable domino effect of evergrande.
maybe they'll trust bust them all and split them each into several companies.
maybe the chinese government will take ownership of the companies for cheap and repurpose them as government owned services?

 

[Simple Moving Average]

makes you wonder what china plans to do with all the companies that will go bankrupt in the inevitable domino effect of evergrande.
maybe they'll trust bust them all and split them each into several companies.
maybe the chinese government will take ownership of the companies for cheap and repurpose them as government owned services?

I don't think they're gonna split. I think they'll take this opportunity to conglomerize.

 

[Kramer on the phone]

another month another nothingburger

 

[StuffedBallot]

Let's add another victim of the Evergrande Financial panic, a Chinese corrupt airline from what I saw on that vlog posted by Wall Street Millenial.
https://youtube.com/watch?v=JMC9TTsznKU

Oh man, Hainan? From Flying Upside Down Hainan? I bet you Captain Duke Nukem is doing a happy dance.

 

[Knight of the Rope]

The offloading has begun:

Evergrande founder sells 9% stake for $344 mln amid debt crunch

The chairman of China Evergrande Group Hui Ka Yan sold 1.2 billion shares in the company at an average price of HK$2.23 each on Thursday, Hong Kong Stock Exchange filings show.

www.reuters.com

Chinese authorities have told Hui, 63, to use some of his personal wealth to help pay bondholders, sources have said.

Hui, who is the property developer's founder, is now freeing up funds by selling luxury assets including art, calligraphy and three high-end homes.

"Your" stadium, Hui? I think you mean "The People's" stadium, comrade.

China Evergrande soccer stadium taken over by government -source

A government body has taken over China Evergrande Group's soccer stadium with a view to selling it, a person with direct knowledge of the matter told Reuters, as the debt-laden property developer scrambles to meet liabilities.

www.reuters.com

 

[mindlessobserver]

The offloading has begun:

Evergrande founder sells 9% stake for $344 mln amid debt crunch

The chairman of China Evergrande Group Hui Ka Yan sold 1.2 billion shares in the company at an average price of HK$2.23 each on Thursday, Hong Kong Stock Exchange filings show.

www.reuters.com

"Your" stadium, Hui? I think you mean "The People's" stadium, comrade.

China Evergrande soccer stadium taken over by government -source

A government body has taken over China Evergrande Group's soccer stadium with a view to selling it, a person with direct knowledge of the matter told Reuters, as the debt-laden property developer scrambles to meet liabilities.

www.reuters.com

The people are going to have a hard time selling it. Who is going to buy it? Comrade Pooh is whistling in the dark. The last thing he should be doing if he wants to preserve "the narrative (tm)" is to put one of Evergrandes boondoggles on the market to offset the debts.

I would not buy that soccer stadium for 20 bucks and a bag a skittles.

 

[Garm]

The people are going to have a hard time selling it. Who is going to buy it? Comrade Pooh is whistling in the dark. The last thing he should be doing if he wants to preserve "the narrative (tm)" is to put one of Evergrandes boondoggles on the market to offset the debts.

I would not buy that soccer stadium for 20 bucks and a bag a skittles.

Unless they intend to use it as a shell game to help fund companies. A "rotating line of credit" for large companies. "The Party never bailed out Evergrande but the stadium mysteriously went for three times the asking price from some company only two months old."

 

[contradiction of terns]

Evergrande shares fall after chairman cuts stake; Fantasia suspends trading

This is like watching one of those building demolition clips in slow motion. I just want it to settle into a pile of dust already. Jeez.

 

[Knight of the Rope]

Evergrande shares fall after chairman cuts stake; Fantasia suspends trading

This is like watching one of those building demolition clips in slow motion. I just want it to settle into a pile of dust already. Jeez.

Speaking of Fantasia, they're now facing a winding-up petition (i.e. legal action brought by the debt-holders to try to force Fantasia into liquidation because they think the company is insolvent and incapable of ever repaying the debt), and today trading has been halted. Info taken from their Investor Relations announcements here.

 

[mindlessobserver]

Rejoice comrades! Great Helmsman Xi Xinping has solved the debt crisis! All the debt currently due now will be paid for!! Using more debt that will need to be paid back later!

 

[Knight of the Rope]

I haven't checked in on Evergrande in about a week but apparently yesterday Hui got a summon to a government hearing after he 'accidentally' declared on Everrgrande's stock exchange filing that there was no fucking way they were going to be able to pay back debts and also act like a solvent company at the same time.

China's Guangdong summons Evergrande boss after debt repayment warning

China's Guangdong province on Friday summoned the chairman of China Evergrande Group after the real estate developer said there was "no guarantee" it would have enough funds to meet debt repayments, while regulators sought to reassure markets.

www.reuters.com

 

[wopirish]

Well, he's dead. He is definitely going to a prison camp and will never be heard from again. The chinese do not like a public humiliation like that.

 

[Knight of the Rope]

Well, he's dead. He is definitely going to a prison camp and will never be heard from again. The chinese do not like a public humiliation like that.

It actually does make me wonder exactly what the plan was for the Evergrande brass. Did they just forget that they were running a Ponzi scheme? This shit shouldn't have been a surprise to any of them. Fuck, even the collapse is the slowest, most blue-ballsy collapse of any company in history. They've had ample time to plan an exit that doesn't involve them and their loved ones getting fucked by Pooh bear.

Then again, long-term thinking never seems to be a Chinese strong suit.

 

[mindlessobserver]

It actually does make me wonder exactly what the plan was for the Evergrande brass. Did they just forget that they were running a Ponzi scheme? This shit shouldn't have been a surprise to any of them. Fuck, even the collapse is the slowest, most blue-ballsy collapse of any company in history. They've had ample time to plan an exit that doesn't involve them and their loved ones getting fucked by Pooh bear.

Then again, long-term thinking never seems to be a Chinese strong suit.

I'd have fucked off to Japan or Europe a year ago for sure. Or at a minimum transferred as much as I could to my family and gotten them out of the country. Comrade Pooh does not like to be bothered with shit like this.

 

[Super-Chevy454]

Rejoice comrades! Great Helmsman Xi Xinping has solved the debt crisis! All the debt currently due now will be paid for!! Using more debt that will need to be paid back later!

https://youtube.com/watch?v=G8R6KfIq4cc

There's one youtuber who trolled that video.

Joy LM​

Western propaganda. Deep down your supporters know USA is the villain here. Mind you this whole mass brainwashing of your viewers isn’t working. Your viewers aren’t dumb.

Funny he didn't mentioned Mossad as well.

 

[ロボ﹏§¤r﹏h¶rœ]

It actually does make me wonder exactly what the plan was for the Evergrande brass. Did they just forget that they were running a Ponzi scheme? This shit shouldn't have been a surprise to any of them. Fuck, even the collapse is the slowest, most blue-ballsy collapse of any company in history. They've had ample time to plan an exit that doesn't involve them and their loved ones getting fucked by Pooh bear.

Then again, long-term thinking never seems to be a Chinese strong suit.

You don't get to the top in China by being smart, but by being an amoral, asskissing sociopath who believes in money buying everything (in China you can pay somebody to take the blame and go to prison for you, for example).

 

[ロボ﹏§¤r﹏h¶rœ]

Evergrande shares slump on renewed default fears​

Fears about the future of Chinese property giant Evergrande Group have returned amid news it could default on its latest debt repayment.

Shares in the company, whose crisis has rippled through the wider property and banking sectors, plunged up to 20% on Monday to a record low.
In a statement over the weekend, Evergrande said it could not guarantee "to perform its financial obligations".
It has liabilities of £300bn (£226bn), including to firms outside China.

There were reports the property developer's billionaire founder Hui Ka Yan was summoned by Chinese officials to explain the latest situation.
Evergrande's statement said: "In light of the current liquidity status of the group, there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations.

"The company received a demand to perform its obligations under a guarantee in the amount of approximately $260m.
"In the event that the group is unable to meet its guarantee obligations or certain other financial obligations, it may lead to creditors demanding acceleration of repayment."
Conita Hung, investment director at Tiger Faith Asset Management, said that despite Evergrande trying to sell assets for months in an attempt to repay debts, the latest statement suggested the company was going to "surrender and need help".
"This sends a very bad signal," she said, adding that Evergrande's problems will take years to resolve even with help from the Chinese government.
Over the weekend, the central bank, banking and insurance regulator and securities regulator also released statements, saying risk to the property sector could be contained.

China's booming housing and commercial property market prompted Xi Jinping's government in Beijing to restrict reckless lending to a sector that some experts feared faced collapse.

Evergrande was one of a number of developers starved of cash due to the regulatory curbs on borrowing, but this led to offshore debt defaults, credit-rating downgrades and sell-offs in developers' shares and bonds.
To stem the turmoil, in October regulators urged banks to relax lending for developers and allow property firms to raise more money from investors.

On Monday, smaller property developer Sunshine 100 China Holdings said it had defaulted on a $170m debt payment "owing to liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment and the real estate industry".