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

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Cpt. Stud Beefpile said:
Might they actually start assembling the invasion fleet over this?
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There’s that chance yeah, not unlike the Falkland Islands. But the risk is a lot higher.
HOMO FOR LIFE RETURNS said:
Chicoms probably want them failing at this point. No point in delaying the inevitable. Chinese property market will never recover from this collapse. Too many supplies. Even for decades to come.
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I’m curious how it will play out around the world. They’re so large I don’t see how it doesn’t have a major impact. Especially third world countries that rely on exporting raw materials. A lot of them have been getting a beating with chinas decreased demand. Which in turn will make the border crisis worse.

I could see the true believers in communism be ok with the capitalist elements in the country failing. Not only would it make it easier to control the populace but it would justify rolling back even more reforms. It could also provide an ample opportunity to grab more power.
 
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It's fascinating to see the shell game the CCP has played with Evergrande and Country Garden in order to keep the music playing. It's literally bugs bunny walking out over the cliff while Elmer (the) Fudd is chasing them. You would think eventually the rules of nature would reassert themselves.
 
HOMO FOR LIFE RETURNS said:
Too many supplies for decades to come.
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To be fair, most of the homes that were built in the Chinese building boom are of such poor quality that they make Soviet Brezhnevkas look awesome. So the supply will quickly dwindle in the next decade or two as their POS commie blocks crumble.

As for the immediate effects in China, can it really get any worse? All of the people that bought properties that are never gonna be built are the ones left holding the bag and as long as the CCP is willing to turn protesters into pink mist there isn't a real sign of unrest in the Chinese population. Hell, the Chinese people have basically been subject to martial law for years now thanks to zero covid policies but they're not rising up yet.
 
FamicomGorby said:
As for the immediate effects in China, can it really get any worse? All of the people that bought properties that are never gonna be built are the ones left holding the bag and as long as the CCP is willing to turn protesters into pink mist there isn't a real sign of unrest in the Chinese population.
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Bag holders is the perfect term for it, along with those who bought in and then now can't sell their apartments without a loss.
 
FamicomGorby said:
To be fair, most of the homes that were built in the Chinese building boom are of such poor quality that they make Soviet Brezhnevkas look awesome. So the supply will quickly dwindle in the next decade or two as their POS commie blocks crumble.

As for the immediate effects in China, can it really get any worse? All of the people that bought properties that are never gonna be built are the ones left holding the bag and as long as the CCP is willing to turn protesters into pink mist there isn't a real sign of unrest in the Chinese population. Hell, the Chinese people have basically been subject to martial law for years now thanks to zero covid policies but they're not rising up yet.
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In China, apparently your mortgage begins even before the property is even built. It's a total mindfuck. CCP ought to either take the load or let their peasant class take all the burden.

I am not sure what's worse. If CCP takes the load, it's a toxic action which removes all risk in the economy and signifies government will bailout any risk takers and Chinese, who are known to have zero morals, will pursue any and all risky activities knowing that their big daddy will bail them out.

If peasants take all the load and sink with the ship, it will completely destroy their middle class for decades to come, which they've been building for last three decades.

It's a total shitshow.
 
HOMO FOR LIFE RETURNS said:
In China, apparently your mortgage begins even before the property is even built.
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2005-7 ish I walked into a sales office for a new build apartment complex in the south of China. I was just curious about how things worked in chinklandia. "All the apartments have already almost been sold" and all I can see is some barely started foundations, lots of artist impressions of how it's going to look and a model miniature of the complex with little LED lights and model cars, green sponge topped model trees.

I walked out thinking, you guys are fucking insane. And here we are.
 
Kel1 shi1 said:
I walked out thinking, you guys are fucking insane. And here we are.
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It kinda makes sense if you think about it. All of these usury tricks that are fucking the average Chinese citizen right now are all things that were once done in the west. But since China won't let it's people learn about these capitalist ideas with any degree of neutrality, the citizenry is basically sitting ducks for economic jewery. I feel bad for the average chinese getting rug pulled right now.
 
Netizennameless said:
It kinda makes sense if you think about it. All of these usury tricks that are fucking the average Chinese citizen right now are all things that were once done in the west. But since China won't let it's people learn about these capitalist ideas with any degree of neutrality, the citizenry is basically sitting ducks for economic jewery. I feel bad for the average chinese getting rug pulled right now.
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Same. Not to mention their internet is censored to all fuck. Even a Ching Average who gets a funny idea things aren't just as the party says is in for a dangerous time just researching.
 
FedPostalService said:
whats western expos to this? Were many firms stupid enough to buy up “cheap” debt hoping the CCP would bail them out or is this something that will collapse Chinese fIrms and slowly ripple out?
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Its hard to say since the Chinese reporting requirements about such things amount too ¯\_(ツ)_/¯. And what they do report is probably a lie. I would like to think most Western Banks were smart enough to stay out of this to a large extent, but that is probably not true. Especially since the Chinese Government has been back stopping loan repayments to foreign creditors for the last two years in order to keep the ship afloat and not lose face. So the Western Colonizers are all getting paid, while the local Chinese investors are getting shafted.

As is tradition.
 
mindlessobserver said:
Its hard to say since the Chinese reporting requirements about such things amount too ¯\_(ツ)_/¯. And what they do report is probably a lie. I would like to think most Western Banks were smart enough to stay out of this to a large extent, but that is probably not true. Especially since the Chinese Government has been back stopping loan repayments to foreign creditors for the last two years in order to keep the ship afloat and not lose face. So the Western Colonizers are all getting paid, while the local Chinese investors are getting shafted.

As is tradition.
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Us Eternal Anglos win again. God save the King.
 

China fines Evergrande for inflating revenue by $80bn​

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HONG KONG -- China's securities watchdog has accused a core unit of China Evergrande Group of inflating revenue by nearly $80 billion over two years before the developer defaulted on its debt.

The China Securities Regulatory Commission has imposed a fine of 4.2 billion yuan ($580 million) on core Evergrande unit Hengda Real Estate for inflating revenue in 2019 and 2020 by a total of 564.1 billion yuan, Hengda said in an exchange filing late Monday.

Hengda cited the inflated revenue figure in its attempts to sell 20.8 billion yuan worth of bonds in 2020 and 2021, an act the regulator said constituted financial fraud. The inflated revenue made up over 60% of its stated profit in 2019 and over 86% in 2020.

The Chinese regulator has also banned Xu Jiayin, the China Evergrande Group founder also known as Hui Ka-yan, from the securities markets for life, saying his involvement in the decision and execution of the falsification were "extremely horrendous acts." The same punishment was applied to Xia Haijun, the ex-chief executive officer of Evergrande.

Hui has been fined 47 million yuan and Xia 15 million yuan.

Four other senior management who approved the financial reports in 2019 and 2020 were penalized with fines. One more executive was fined for giving approval to onshore bonds in 2020.

The filing comes about two months after a Hong Kong court ordered Evergrande into liquidation. The group has more than $300 billion in liabilities. After the liquidation order, Evergrande CEO Siu Shawn said the liquidation will not affect the group's onshore or offshore operations.

In January 2023, PwC resigned as the auditor of the Hong Kong-listed entity of Evergrande, citing different views over financial disclosures on Evergrande's new energy vehicle arm and the property services unit. The group at the time was being investigated by Hong Kong audit authorities over its 2020 annual reports. In April 2023, PwC's mainland affiliate, PwC Zhongtian, resigned as the auditor of Hengda.

GMT Research, a Hong Kong-based accounting investigation company, in December, said, "There were never any profits" at Evergrande. The Chinese developer disputed the report and said it was "without basis."

Hui has been "subject to mandatory measures" in the mainland after he was suspected of committing crimes, according to a company filing by Evergrande in late September. No details of those measures were given.
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Disgraced Evergrande CEO Xu Jiayin was publicly heard in Shenzhen court earlier this week, and admitted guilt to the eight charges against him:


Evergrande also having their own "dance" group shows once again how the Chinese copycat the West at everything. Real estate bubbles? Jeffrey Epstein sex groupees? Wholesale bribery of CCP officials to secure more financing? Massive embezzlement of company funds? "HOLY MY LINGLONG", goes China.
 
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