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

Bet those guys at Hollywood that banked it all on China taking over are feeling real dumb right now

You bring up a interesting point, Hollyweird has been bending the knee to China for a long time now and they have recently became hostile (well more so) to Western Media entering their market and Hollywood has been banking on getting easy access to the largest media market in the world, while they have been preaching Social Justice in the west, in China they censor postors to remove black people, they also film wholly different scenes to totally remove LGBT and Black people from the films as best they can.
They have also been using directly and indirectly Ughur labour and trying to keep it out of the Western press as much as they can.

I wonder how they are going to react when the money drys up.

Alot of their construction projects sit unfinished, over 3 million workers have not been paid and more importantly, the idiots also paid their suppliers in script rather then cash up front. Part of what allowed this company to grow so large so quickly is that they used debt to the exclusion of capital. Capital in flow from new buyers was used to pay existing debt obligations.

I was watching some videos late last year about Construction projects in China something like 70% of them are started but never finished and the ones that are finished are really substandard in quality - they look alright for a few months but then you can see where they really cheeped out by using the wrong type of concrete or steel that's not been QC'd at all and is badly welded, they use poorly dried timber that goes on OK but warps and cups the moment the weather changes etc.
There internal stuff has been surfacing on the international market for construction small's like nails and honestly doing a side by side comparison of a Nail produced in the UK and one from China the weight alone is enough to let you know the Chinese nail is going to be trouble the second you pound it with a hammer the head starts to deform and bend.

China also has a internal infrastructure issue with there construction, there power grid is still mostly reliant on Coal or buring waste to generate power but the lines are inexpertly laid out and badly maintained. Their rail network is bad as well there passenger lines are outright dangerous with the rolling stock being fastly constructed, on the cheapo but poorly maintained for the speeds they want to run them at, and there goods lines outside the Citys and population centres are more akin to tempory rail lines that are laid to perform a short term heavy goods movement job but will settle warp and slow down the movement of goods.

I'm not even going to mention the looming disater that the 3 Gorges dam is going to be if they stop there constant maintenance and repair work they have to do because it was so badly constructed it's at near constant risk of failure.

They are whistling in the dark. Apparently alot of western banks ARE holding bags in this. I've heard names from Credite Suisse to Blackrock.

That's always been a interesting situation, China has for years been growing at a unsustainable rate, but over such a period of time the short sited financial markets in the west didnt classify it as a massive global bubble waiting to burst, if this does pop China or starts the big wobble it will make 2008 look like a small market correction.

crypto on the otherhand. Alot of Chinese people have money in crypto and are liquidating.

Didn't China really put the screws to Crypto in china in the last 2 - 3 years where people where not allowed to own or move it around and even stopped mining last year? Something about it being a risk to state security, and tax avoidance?
 
Shanghai stock market opens for the first time this week in 8 hours. Thursday Evergrande is due to make good on its debt repayment schedule or default.
 
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Didn't China really put the screws to Crypto in china in the last 2 - 3 years where people where not allowed to own or move it around and even stopped mining last year? Something about it being a risk to state security, and tax avoidance?

Just mining

The CCP didnt like all the industrial mining farms. Alot of them were consuming ridiculous amounts of energy
 
Just mining

The CCP didnt like all the industrial mining farms. Alot of them were consuming ridiculous amounts of energy

Ah OK that makes sense, I could have sworn I read something about the CCP cracking down on easily non state controlled assets because they where frightened about missing out on the Tax revenue and thought crypto got caught up in that.
 
China Stocks Offered Evergrande Reprieve as PBOC Adds Liquidity
Bloomberg News
22 September 2021, 11:39 am AEST Updated on 22 September 2021, 1:45 pm AEST
[ original | archive ]

Evergrande’s onshore property unit will make an interest payment for a bond maturing in 2025 on Thursday, according to an exchange filing.

Chinese shares fell less than feared Wednesday after a two-day holiday amid plans for an interest payment by China Evergrande Group and signs of support from the country’s central bank.

The CSI 300 Index pared opening losses of as much as 1.9% after an Evergrande unit said it had negotiated a coupon payment with bondholders. An injection of short-term cash by the People’s Bank of China also lent support, helping steady risk assets beyond the world’s second-largest economy.

“I think we may be seeing a temporary reprieve with some repayments aiding to provide a better-than-expected situation than many would expect,” said Jun Rong Yeap, a market strategist at IG Asia Pte. “This also comes along with some injection of short-term funds by the PBOC, which suggests that they are monitoring the situation closely and are ready to step in if the economy comes under risks.”

U.S. equity futures reversed early losses to edge higher in Asia trading, while the yen -- a traditional haven for investors -- retreated. Futures contracts of China’s 10-year government bonds extended a rally into the third straight session with the biggest gain in three weeks, while the yield on the notes was on pace to hit the lowest in two weeks.

Global investors had been on tenterhooks this week awaiting the reaction of Chinese traders to concerns about Asia’s biggest junk bond issuer and a crackdown on the country’s real-estate sector. Some $6.7 billion was wiped off the value of Hong Kong’s four top property giants on Monday amid a selloff that ensnared even stocks with less tangible links to China.

Investors are closely watching how Beijing plans to deal with the situation surrounding the world’s most-indebted developer. Evergrande has about 2 trillion yuan ($309 billion) in assets -- equivalent to 2% of China’s gross domestic product, according to Goldman Sachs Group Inc. calculations.

The company’s onshore property unit will make an interest payment for a yuan bond maturing in 2025 on Thursday, according to a vaguely-worded exchange filing. Meanwhile, China’s central bank injected 120 billion yuan into the banking system through reverse repurchase agreements, exceeding the 30 billion yuan of maturities on Wednesday.

The news on the repayment “will be helpful and hopefully suppress some of the inevitable volatility and downside after the holiday break,” said Gary Dugan, chief executive officer at the Global CIO Office. “For confidence to return more meaningfully, it will need the market to see sight of the broad restructuring plans for Evergrande.”

Calls are growing within China on the government to take steps to ensure the Evergrande crisis would not spiral out of control. The China Business News, owned by the state-run Shanghai Media Group, in a Tuesday editorial urged the authorities to manage the pace of tackling risks in the property sector and set up a “fire wall” between the industry and the financial system.

--

tl;dr: China's Central Bank kicked the Evergrande can down a bit futher down the road
 
Crypto markets are about to get the red dildo again as markets in Asia start going. The debt market over there is going to go full Panic, and US Dollar Tether has MASSIVE exposure to the Asian debt market.

Get out of Tether.
China banned crypto last night, so good call. Its tanking even harder than it naturally would.
In other news I just lost a not insignificant amount of money. Not enough to cause a problem, but it stings.
 
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If the reports of them defaulting today are true, tomorrow is going to be a wild ride for the western markets.

I've spent a good chunk of my free time today arranging things to limit the damage to my money. Still expect to lose a bit, but I'll be holding steady and even buying the dips on a few things. Should be able to ride out if things really go worst case.
 
There are rumors swirling Fidelity and Blackrock have a 20% exposure each to the China property market and both are about to get shafted by the Commies. China's government is trying to figure out how to save its construction companies and hundreds of thousands of domestic retail investors. The shrieking of foreign Jews is VERY low on the totem pole for them atm.

The tell is in how all the financial media companies are proclaiming there is nothing to see here...while private investment is fleeing Blackrock and Fidelity like they both have Leprosy.
 
If all that you're saying is true, then here's a song for tomorrow.

5 months ago.


Blackrock was not just buying up property in America. They were buying it up in China too. They have massive exposure. And since all these banks are incestuous as all hell I think others followed the pied piper of this fund. Who owns all those dollar denominated bonds? Who was providing the funding for all those ghost cities?

I have a growing suspicion it was not the Chinese government.
 
You that could be (((TPTB)))?
The powers that Be since the 1990s have believed they could remake China in their image. Since the 2000's they have believed they could profit from China. Since the 2010's they have believed they could make the West, China, and that China would be a good steward to replace the fractious America.

They are all fools. They assume China is motivated by math and market forces. It's not. China is motivated by an unrelenting desire for revenge no matter the cost. These idiots have handed China powerful weapons with which to exact that revenge and if given the chance they will use them. The Chinese do not CARE about the global economy.

To them the global economy is an artifact of the western imperialists. Given the chance to crash it with no survivors they will do so. They have living memory of suffering beyond the comprehension of people in charge in the West. Xi Xinping grew up in one of Maos labor camps FFS. They view the western elites as feckless, decadent imbeciles.

And the worst part? They are correct in all their assessments.
 
If the reports of them defaulting today are true, tomorrow is going to be a wild ride for the western markets.

I've spent a good chunk of my free time today arranging things to limit the damage to my money. Still expect to lose a bit, but I'll be holding steady and even buying the dips on a few things. Should be able to ride out if things really go worst case.
Has there been any confirmation of the default?
 
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