What a waste
There might be some chain reactions in Chinese housing bubble.
Most likely the Chinese government will be forced to bail them out:
- Evergrande is selling their properties at bankruptcy sale prices, which is likely to impair the Chinese housing market overall.
It’s ok U.S. pensioners will bail them out.
I just watched the piece the OP posted, fascinating. Can anyone tell me is there any sort of, regularly airing, Dateline equivalent on Taiwan TV?
A lot of small businesses which haven’t been paid by Evergrande will go belly up.
The tens of billions of debts would leave banks with massive holes in heir balance sheets and the whole credit house of cards there would come tumbling down.
Their bonds are already wotheless.
The government will bail them out but yeah the little guys will get slammed.
It’s like the ending to Fight Club.
Can someone explain to me what the hell is going on here?
I guess CCP might be able to bail-out or restructure Evergrande, but what would they do if (or should I say when?) all of them crash?
Build it and they will come they said ….
build build build build. and everyone is like sheep, just stash every cent you got into a house because that’s what everybody is doing right?
overheated property market in CHINA about to go boom, taiwan to follow? tons of empty buildings here as well.
I found this Twitter thread a bit helpful. But I confess it’s like a lot of business and finance stuff for me: I have trouble understanding why some businesses are confidence games that collapse while others are spectacularly successful.
One can only hope
I would think some Taiwanese that have been stashing all their wealth in various properties that they never ever use would start selling off some of the property, but not enough to cause the bubble to actually burst. Selling property means paying all sorts of taxes, and the Taiwanese buy property to use as something of a domestic tax haven (parking earned money they never paid taxes on, “buying” property at a tenth or lower than its actual value as a payment from someone for something else, free investment because mortgage = tax write off, and the one so many of us have experience with: not paying taxes on rental income)
I reckon the Chinese government will step in after a big haircut to investors. That don’t really have a choice the systematic risk is far too big. I think there’s a bit of an over reaction to this news at the same time it’s right tto be cautious right now.
Markets dipped on Monday but are climbing back.
Chinese regulators allowed this to happen because it was good for economic growth numbers on paper. This will bite them in the ass.
Company to be broken up in 3 smaller parts. CCP taking over control.
Haha wasn’t it Blackrock that said China is a great investment opportunity recently lol.
Top three usd junk bondholder .
But I guessed right , the soundbites were more about accessing Chinese savers money.
It was the Jackie curse after all!