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

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Garm said:
www.reuters.com

China Evergrande reports progress in resuming home deliveries

China Evergrande Group said on Sunday it had made initial progress in resuming construction work with its chairman vowing to deliver 39,000 units of properties in December, compared with fewer than 10,000 in each of the previous three months.
www.reuters.com www.reuters.com

I assume this is propaganda but it does sound like some movement on Evergrande part.
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Not exactly a propaganda, the government have been saying they're going to prioritize in helping finishing constructions first, especially for the homeowners
 
Rezza said:
Not exactly a propaganda, the government have been saying they're going to prioritize in helping finishing constructions first, especially for the homeowners
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I meant more that this sounds like "oh yeah, they are financially solvent" when in reality "haha, creditors get fucked."
 
attractive_pneumonia said:
Reducing stock of real estate and making clear indications that there will be no new construction increases the price of extant buildings which is desperately needed to save the portfolios of many of these companies.
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I don’t understand that reasoning though. There’s gotta be so many millions of buildings just like that in China, killing a few dozen is dubiously helpful. And that’s not even to add the wasted money that wen into the project, how are those losses helped by destroying the building?
 
Rezza said:
Not exactly a propaganda, the government have been saying they're going to prioritize in helping finishing constructions first, especially for the homeowners
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CCP is doing a TARP on steriods and getting local provices to buy from Evergrand at basement prices and promise to complete much of the unfinished construction. The Evergrand board has been stacked with Party members so it's pretty much nationalized at this point anyway.
 
LatinasAreTheFuture said:
There’s gotta be so many millions of buildings just like that in China, killing a few dozen is dubiously helpful
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There is a huge glut of partially inhabited buildings, and this destruction is not immediately helpful at all. This is a long term plan to salvage the real estate market that will take years, maybe a decade or more before it comes to fruition. Capitalism is not a rational force at all, NYC's real estate market is so deranged that land owners will literally let a property go vacant for a decade or more rather than rent it at a lower rate because that would affect the total price of the property.
 
attractive_pneumonia said:
There is a huge glut of partially inhabited buildings, and this destruction is not immediately helpful at all. This is a long term plan to salvage the real estate market that will take years, maybe a decade or more before it comes to fruition. Capitalism is not a rational force at all, NYC's real estate market is so deranged that land owners will literally let a property go vacant for a decade or more rather than rent it at a lower rate because that would affect the total price of the property.
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NYC’s real estate market is overly regulated to absurdity. To say capitalism is not a rational force because of it is absurd.

Capitalism is a description for nature, not a prescription for policy. Capitalism will fuck over overly controlled crappy economic policy, much like Katrina destroyed crappy levies.
 
China has had its first municipal bankruptcy.


Country Garden, the largest real-estate company cannot sell any bonds and is seeing its stock collapse.

 
Garm said:

Chinese courts do something.
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They've also had a bunch of auditors resigning left and right:

It's interesting that this Evergrande shit has kind of fallen onto the back-burner though. I suppose there's a lot of other shit going on in the world since 2022 started, but it's still odd.
 
Knight of the Rope said:
They've also had a bunch of auditors resigning left and right:

It's interesting that this Evergrande shit has kind of fallen onto the back-burner though. I suppose there's a lot of other shit going on in the world since 2022 started, but it's still odd.
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The entire table of dominos is shaking now. Not just one anymore.

Also a bankruptcy is more slow moving than everything else.
 
Knight of the Rope said:
They've also had a bunch of auditors resigning left and right:

It's interesting that this Evergrande shit has kind of fallen onto the back-burner though. I suppose there's a lot of other shit going on in the world since 2022 started, but it's still odd.
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Because the Party have been very busy doing a "Spring Cleaning" of the internet right before the Olynpics, so any news about it might be suppressed to make sure the event goes smoothly. That said, I'm waiting the moment they dropped their financial report though, should be fun
 
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