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

Sorry for the double post and to bring back this thread from the dead but seems then someone had said "hold my beer" to Evergrande.

China Facing "Bigger Debt Crisis Than Evergrande" In Under 30 Days
BY TYLER DURDEN​

THURSDAY, AUG 10, 2023 - 12:40 PM
The undisputed credit event of 2021 - a year when rates around the globe were near all time lows and bankruptcies were virtually unheard of - was the default and collapse of Chinese property giant Evergrande, which many feared would drag down the entire Chinese financial system due to its hundreds of billions in real-estate linked liabilities if the state didn't step in (in the end, Beijing did help but in a much more subdued way than the bull-in-a-China-store nationalizations from the country's recent history).
Fast forward two years and China is again emerging as the venue of what may be the year's biggest default, one which - according to Bloomberg - could spark a "debt crisis that rivals China Evergrande Group’s default."
On Monday, Country Garden Holdings, formerly China's largest private sector developer and headed by China’s formerly richest woman, Yang Huiyan, officially entered a technical default grace period, failing to pay interest on two bonds and leaving investors in the dark after dollar bondholders said they’ve yet to receive coupon payments. That puts the firm—which had 1.4 trillion yuan ($199 billion) of total liabilities at the end of last year—on course for its first public default if it doesn’t make the payments within the 30-day grace period.
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Soon...
Three gorges.jpg
 
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At this point, China's fate is both an interesting thing to spectate and up in the air.
  • BRICS is in a failing state
  • Plans to overtake Taiwan is on the way, or probably delayed
  • Other countries are starting to rely on their own industries instead of outsourcing to the mainland
  • Typhoons have flooded the mainland
  • People have started doing rallies and even ignoring laws out of spite
  • Now Evergrande is kaput, potentially putting China and the globalized market in potential danger right after the SVB bail-outs
 
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mindlessobserver said:
Worse then us actually. At least in the West the Banks and the Government are on the same team. This is not the case in China. Quite the opposite. The Chinese banks are loyal to Jiang Zemin, the previous premier of the CCP, and not Xi Xinping the current premier.
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Who are the banks loyal to now that Zemin is dead?
 
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WULULULULU said:
At this point, China's fate is both an interesting thing to spectate and up in the air.
  • BRICS is in a failing state
  • Plans to overtake Taiwan is on the way, or probably delayed
  • Other countries are starting to rely on their own industries instead of outsourcing to the mainland
  • Typhoons have flooded the mainland
  • People have started doing rallies and even ignoring laws out of spite
  • Now Evergrande is kaput, potentially putting China and the globalized market in potential danger right after the SVB bail-outs
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Fine by me. Let's GOOOOOOOOOOOOOO. 1692373974554.png
 
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Wouldn't care if our own economy wasnt held together by tape meaning that china shitting the bed could trigger a new great recession, and we're still dealing with the aftermath of the last one.
Kujo Jotaro said:
Soon...
View attachment 5278770
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Even if it failed the ccp will simply re-route the water and drown everybody outside of beijing like they did with the typhoon.

Not kidding, they deliberately opened all the levees to other cities and towns so they would get completely flooded instead of the capital, who the hell knows how many people died since the water level was high enough to cover traffic lights.
 
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cybertoaster said:
Even if it failed the ccp will simply re-route the water and drown everybody outside of beijing like they did with the typhoon.

Not kidding, they deliberately opened all the levees to other cities and towns so they would get completely flooded instead of the capital, who the hell knows how many people died since the water level was high enough to cover traffic lights.
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They flooded other cities for a fucking golf course.
 
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cybertoaster said:
Wouldn't care if our own economy wasnt held together by tape meaning that china shitting the bed could trigger a new great recession, and we're still dealing with the aftermath of the last one.

Even if it failed the ccp will simply re-route the water and drown everybody outside of beijing like they did with the typhoon.

Not kidding, they deliberately opened all the levees to other cities and towns so they would get completely flooded instead of the capital, who the hell knows how many people died since the water level was high enough to cover traffic lights.
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The dam is also used as a hydroelectric power source, once they get rid of most of the water, god knows how many blackouts China will get, particularly those still reliant on the dam's energy.
 
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It cannot be understated how bad a sign this is. China pulled out ALL the stops to try and paper over the Evergrande Debacle.

The fact that now, a year later Evergrande is presenting itself before the Court of the United States is a catastrophe wrapped in a disaster.

This was the darling company of China. The builder of their ghost cities. The vanguard of their new belt and road. When they began to fail Beijing forced the peasants to pay for apartments that would never be built. They disappeared the CEO. They backstopped the company with billions in state money.

For nothing. And now the vanguard of the Chinese century throws itself on the Mercy of American Justice. There are no words in the English or Chinese language to describe what has just happened here. Maybe the Greeks have it.
 
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mindlessobserver said:
It cannot be understated how bad a sign this is. China pulled out ALL the stops to try and paper over the Evergrande Debacle.

The fact that now, a year later Evergrande is presenting itself before the Court of the United States is a catastrophe wrapped in a disaster.

This was the darling company of China. The builder of their ghost cities. The vanguard of their new belt and road. When they began to fail Beijing forced the peasants to pay for apartments that would never be built. They disappeared the CEO. They backstopped the company with billions in state money.

For nothing. And now the vanguard of the Chinese century throws itself on the Mercy of American Justice. There are no words in the English or Chinese language to describe what has just happened here. Maybe the Greeks have it.
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If there's one thing the Chinese hate more than anything else its humiliation.
 
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How about they ignore the problem again, don't fix the underlying issues again, and do another expensive and only tangentially related move to save face? If they actually enforced their building code 15 years ago then today the Evergrande situation wouldn't be that much of a disaster. Same with not putting out bullshit figures to bait investors. Same with treating your clients as clients and not indentured serfs which owe you money.
 
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mindlessobserver said:
For nothing. And now the vanguard of the Chinese century throws itself on the Mercy of American Justice. There are no words in the English or Chinese language to describe what has just happened here. Maybe the Greeks have it.
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Could this get winnie the xi toppled? he's already getting TOPPED
 
mindlessobserver said:
It cannot be understated how bad a sign this is. China pulled out ALL the stops to try and paper over the Evergrande Debacle.

The fact that now, a year later Evergrande is presenting itself before the Court of the United States is a catastrophe wrapped in a disaster.

This was the darling company of China. The builder of their ghost cities. The vanguard of their new belt and road. When they began to fail Beijing forced the peasants to pay for apartments that would never be built. They disappeared the CEO. They backstopped the company with billions in state money.

For nothing. And now the vanguard of the Chinese century throws itself on the Mercy of American Justice. There are no words in the English or Chinese language to describe what has just happened here. Maybe the Greeks have it.
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Ehh I have a feeling China will get the US Fed to "fix" things for them with the threat of a 2008 level recession.

We all know Biden is good for it, or at least key members of his CCP aligned cabinet. They'll just say that it's climate change money and remind everyone of all the electric cars China makes.
 

China Evergrande shares fall 79% on first trading day since ban lifted (Archive)​

HONG KONG -- China Evergrande Group shares plunged 79% on Monday, their first trading day following a suspension of more than 17 months.

Shares in the embattled real estate developer opened 87% lower and ended the day at 0.35 Hong Kong dollars. Trading had been halted since March 21, 2022, when shares were priced at HK$1.65. Evergrande was the most traded stock in Hong Kong on Monday, with about 1.85 billion shares changing hands.

Evergrande said the same day that a meeting with creditors to discuss offshore debt restructuring has been pushed back from Monday to Sept. 26. It cited various reasons for the delay, including "numerous media reports which have wholly mischaracterized the restructuring recognition under Chapter 15" of the U.S. bankruptcy code.
The company filed for bankruptcy protection in a New York court on Aug. 17.

Evergrande was once China's largest real estate developer but defaulted on a number of debt obligations, leaving homeowners with unfinished homes and suppliers with unpaid bills.

The company applied for the trading suspension to be lifted on Friday evening after it said it had cleared various conditions set by the Hong Kong Exchange, including the release of financial reports.

The results for the first six months of the year were announced Sunday night, with the company reporting a net loss of 33.01 billion yuan ($4.53 billion), better than the 66.35 billion yuan loss a year ago.

The distressed developer also posted long-overdue annual earnings reports for the last two years on Aug. 16, revealing a combined net loss of 581.94 billion yuan, a reversal from 8.07 billion yuan in net profit in 2020 prior to a crackdown by Beijing on the industry.

The company said in its Sunday night filing that its financial status is still precarious. Its total cash and cash equivalents, including restricted cash, was 13.38 billion yuan as of the end of June, while net current liabilities were 713.10 billion yuan. The company also said that "it is involved in various litigation and arbitration cases for various reasons."

Its electric vehicle unit China Evergrande New Energy Vehicle Group on Friday night separately announced a net loss of 6.86 billion yuan for the first six months of the year, compared to a net loss of 13.36 billion yuan a year ago.

Similar to its parent, the EV subsidiary's financial position remains strained, as its cash and cash equivalents including restricted cash came to 117 million yuan as of the end of June, while its net current liabilities stood at 36.61 billion yuan.
The company also revealed that it has 9.34 billion yuan of unpaid debt and 3.59 billion yuan of overdue commercial bills, and has 48 pending litigation cases involving 10.88 billion yuan.

As part of the financial restructuring, China Evergrande Group has proposed selling part of the EV unit to NWTN (Zhejiang) Automobile, a Nasdaq-listed, Dubai-headquartered mobility product company founded by Chinese entrepreneur Alan Nan Wu.

NWTN is willing to acquire 27.5% of the enlarged share capital of Evergrande's EV unit for HK$3.88 billion to "support [the] business recovery and growth" of Evergrande Group. The new shares will be issued at HK$0.6297 apiece, representing a 63% discount to the stock price when the agreement was signed on Aug. 14.

Evergrande Group and its major shareholders, including founder Xu Jiayin, also known as Hui Ka-yan, have also agreed to convert their loans into a total of 5.44 billion new shares, at a price of HK$3.84 a piece. The Hong Kong-listed shares of the EV unit closed at HK$1.22 on Monday.
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Return of the Freaker said:
Oh, bother

View attachment 2553940

What are the chances that the CCP Bails out/Nationalizes Evergrande in a way that might help their own, while foreign bagholders get fucked?
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And Xi proceeds to throw half the country into poverty after blackrock gibs dissappear.
Then blackrock leeches fucks over American real estate.

CCP is a disease,a viral disease. Thanks socialism! Praise Marx!
 
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Glowie said:
And Xi proceeds to throw half the country into poverty after blackrock gibs dissappear.
Then blackrock leeches fucks over American real estate.

CCP is a disease,a viral disease. Thanks socialism! Praise Marx!
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Most of China is already in poverty.
 
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