Commissar SFLUFAN Posted January 29 Share Posted January 29 If there's one story that's being seriously underreported, it's the collapse of the Chinese property market and its impact on the overall Chinese financial system. Hong Kong court orders China's Evergrande, which owes $300 billion, to liquidate WWW.NPR.ORG China Evergrande is one of the biggest Chinese developers that have collapsed under pressure to rein in surging debt the ruling Communist Party views as a threat to China's slowing economic growth. Quote A Hong Kong court ordered China Evergrande, the world's most heavily indebted real estate developer, to undergo liquidation following a failed effort to restructure $300 billion owed to banks and bondholders that fueled fears about China's rising debt burden. Judge Linda Chan said Monday it was appropriate for the court to order Evergrande to wind up its business given a "lack of progress on the part of the company putting forward a viable restructuring proposal" as well as Evergrande's insolvency. China Evergrande Group is one of the biggest of a series of Chinese developers that have collapsed since 2020 under official pressure to rein in surging debt the ruling Communist Party views as a threat to China's slowing economic growth. But a crackdown on excess borrowing has tipped the property industry into crisis, making it a drag on the economy, as scores of other developers ran into trouble, their predicaments rippling through financial systems in and outside China. Global financial markets were rattled earlier by fears an Evergrande liquidation could cause global shockwaves. But Chinese regulators said the risks could be contained. Only a few billion dollars of Evergrande's debt was owed to foreign creditors. It's unclear how the liquidation order will affect China's financial system. Quote Link to comment Share on other sites More sharing options...
Jason Posted January 29 Share Posted January 29 Who could have possibly known building ghost cities in the middle of nowhere with nonfunctional buildings isn't a sound basis for an economy. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted January 29 Author Share Posted January 29 The degree to which this could further dampen the already anaemic growth of the Chinese economy is being reflected in the decline of the price of petroleum today where that potential factor is overshadowing the prospect of military confrontation between the US and Iran. Quote Link to comment Share on other sites More sharing options...
Uaarkson Posted January 29 Share Posted January 29 Another outcome I predicted 10+ years ago coming to fruition Quote Link to comment Share on other sites More sharing options...
Greatoneshere Posted January 29 Share Posted January 29 Along with China's population issue, China is in for some rough times ahead it seems like. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted January 29 Author Share Posted January 29 1 minute ago, Greatoneshere said: Along with China's population issue, China is in for some rough times ahead it seems like. That could very well be an understatement. The Chinese banking system as a whole is essentially a "puzzle box". What's going on with China's shadow banking system? | CNN Business WWW.CNN.COM The world’s second biggest economy is in a rut. Chinese households are spending less money, factory production is slowing and businesses are investing at a slower pace than they were last year. Unemployment among the country’s youth has jumped so much that Beijing decided to stop releasing the data. The real estate market is in a downfall with home prices dropping and a number of developers defaulting. 1 Quote Link to comment Share on other sites More sharing options...
Greatoneshere Posted January 29 Share Posted January 29 1 minute ago, Commissar SFLUFAN said: That could very well be an understatement. The Chinese banking system as a whole is essentially a "puzzle box". What's your guess when we start seeing a steep drop-off in China's success rate as an economic powerhouse? Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted January 29 Author Share Posted January 29 Just now, Greatoneshere said: What's your guess when we start seeing a steep drop-off in China's success rate? That probably started even before the pandemic significantly accelerated the underlying problems with the Chinese economy. 2 Quote Link to comment Share on other sites More sharing options...
mclumber1 Posted January 29 Share Posted January 29 I eagerly await the Balkanization of China! Quote Link to comment Share on other sites More sharing options...
Jason Posted January 29 Share Posted January 29 18 minutes ago, Commissar SFLUFAN said: the decline of the price of petroleum today Republicans in shambles Quote Link to comment Share on other sites More sharing options...
CitizenVectron Posted January 29 Share Posted January 29 4 hours ago, Jason said: Who could have possibly known building ghost cities in the middle of nowhere with nonfunctional buildings isn't a sound basis for an economy. Everyone has an uncle who shared a Facebook post 5+ years ago of China building empty concrete towers in <48hrs and asked why nobody could get anything done here, like when they were kids. Quote Link to comment Share on other sites More sharing options...
outsida Posted January 30 Share Posted January 30 5 hours ago, CitizenVectron said: Everyone has an uncle who shared a Facebook post 5+ years ago of China building empty concrete towers in <48hrs and asked why nobody could get anything done here, like when they were kids. OMG China is building all this useless infrastructure, democracy is overrated! /s Quote Link to comment Share on other sites More sharing options...
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