China's largest property developer, Evergrande, has filed for bankruptcy leaving liabilities of $300 billion, mostly to investors from outside China.
Now another Chinese property company, Country Garden, looks like going under (todays FT) with liabilities close to $200 billion, having defaulted on August loan repayments to "foreign investors". The Chinese government has said it will not intervene to bail out Country Garden. And why should they help foreign investors getting their fingers burned?
Who are these dimwits investing in a falling property market in China? What guarantees did they receive about their investment and from whom? Anyone here any thoughts? (Anyone lost any money?!)
Chaos for investors in China
-
barkingmad
- Chief Pilot
- Posts: 5497
- Joined: Mon Nov 02, 2015 9:13 pm
- Location: Another Planet
- Gender:
- Age: 75
Re: Chaos for investors in China
Are they really dimwits?
Or are they just ignorant of sensible money management and the basic deadly sin of greed has clouded their judgement?
Or maybe they were banking on the coming war in the South Chinaah Sea and were hoping for some type of “shorting” gamble to pay off...
Who knows, I won’t be cashing in my Premium Bonds for some dodgy enterprise in the Far East, but then some would say I’m just a Big Jessy and hopefully a solvent one, until the Western economies and banks go down the tubes as they are forecast so to do?
Or are they just ignorant of sensible money management and the basic deadly sin of greed has clouded their judgement?
Or maybe they were banking on the coming war in the South Chinaah Sea and were hoping for some type of “shorting” gamble to pay off...
Who knows, I won’t be cashing in my Premium Bonds for some dodgy enterprise in the Far East, but then some would say I’m just a Big Jessy and hopefully a solvent one, until the Western economies and banks go down the tubes as they are forecast so to do?
-
Woody
- Chief Pilot
- Posts: 10281
- Joined: Tue Aug 25, 2015 6:33 pm
- Location: Sir Kenny Dalglish Stand
- Age: 59
Re: Chaos for investors in China
Maybe they’ll stop building all those power stations now?
https://www.bbc.co.uk/news/world-asia-china-68002803
https://www.bbc.co.uk/news/world-asia-china-68002803
When all else fails, read the instructions.
Re: Chaos for investors in China
Evergrande shares halted after Hong Kong court orders liquidation
The embattled property developer, once one of the largest in China, has in recent years been enveloped in Beijing’s debt crisis.
https://www.nbcnews.com/news/world/ever ... rcna136103
Shares of China Evergrande were halted after plunging over 20% in early trading on Monday after a Hong Kong court ruled to liquidate the embattled property developer.
It comes against the backdrop of a spiraling debt crisis in the country.
China Evergrande, which was once one of the country’s largest property developers, has in the last few years been enveloped in Beijing’s debt crisis.
The Wall Street Journal earlier reported that Evergrande’s overseas creditors failed to reach an 11th-hour deal this weekend to restructure, which could mean an imminent liquidation for the real estate developer.
Evergrande is the world’s most indebted property developer, which defaulted in 2021 and announced an offshore debt restructuring program in March last year.
Containing the contagion
Policymakers in China have been scrambling to stem the debt crisis in the beleaguered property sector.
Last week, the People’s Bank of China and the Ministry of Finance announced measures to help boost the liquidity available to property developers.
The measures, which will be valid until the end of this year, will help ease a lingering cash crunch for Chinese developers after Beijing cracked down on the sector to address bloated debt levels in real estate.
The property sector in China remains challenging against the backdrop of the Evergrande news, according to Alexander Cousley, APAC investment strategist at Russell Investments.
“I think the measures have to be much more targeted and much more forceful,” Cousley said on CNBC’s “Street Signs Asia.”
Evergrande’s crisis set off contagion fears that China’s property sector troubles could spill over to other parts of the world’s second-largest economy.
Country Garden, also one of China’s largest developers, has been struggling to pay off its own debt. However, the developer reportedly said last month that it may avoid a default on its yuan-denominated bonds.
PP
The embattled property developer, once one of the largest in China, has in recent years been enveloped in Beijing’s debt crisis.
https://www.nbcnews.com/news/world/ever ... rcna136103
Shares of China Evergrande were halted after plunging over 20% in early trading on Monday after a Hong Kong court ruled to liquidate the embattled property developer.
It comes against the backdrop of a spiraling debt crisis in the country.
China Evergrande, which was once one of the country’s largest property developers, has in the last few years been enveloped in Beijing’s debt crisis.
The Wall Street Journal earlier reported that Evergrande’s overseas creditors failed to reach an 11th-hour deal this weekend to restructure, which could mean an imminent liquidation for the real estate developer.
Evergrande is the world’s most indebted property developer, which defaulted in 2021 and announced an offshore debt restructuring program in March last year.
Containing the contagion
Policymakers in China have been scrambling to stem the debt crisis in the beleaguered property sector.
Last week, the People’s Bank of China and the Ministry of Finance announced measures to help boost the liquidity available to property developers.
The measures, which will be valid until the end of this year, will help ease a lingering cash crunch for Chinese developers after Beijing cracked down on the sector to address bloated debt levels in real estate.
The property sector in China remains challenging against the backdrop of the Evergrande news, according to Alexander Cousley, APAC investment strategist at Russell Investments.
“I think the measures have to be much more targeted and much more forceful,” Cousley said on CNBC’s “Street Signs Asia.”
Evergrande’s crisis set off contagion fears that China’s property sector troubles could spill over to other parts of the world’s second-largest economy.
Country Garden, also one of China’s largest developers, has been struggling to pay off its own debt. However, the developer reportedly said last month that it may avoid a default on its yuan-denominated bonds.
PP