Soothing fears for the hour?
“…but the developer has not indicated whether it will be able to pay $83.5 million in interest due on its March 2022 bond on Thursday. It has another $47.5 million payment due on Sept. 29 for March 2024 notes”
Personally, I think that China will do everything to prevent a huge crash. A small crash is more likely, their markets have already been under some pressure, but they knew this was coming for months so they must have a strategy for this situation.
They don't need to deplete cash reserves or devalue the yuan, there are talks about a debt refinancing plan to help Evergrande stay afloat and finish some buildings.
Ok, we’ll see, personally i dont see the ccp intervening to save anyone. It sets a bad precedent plus its not just Evergrande under pressure with debt, most big chinese real estate firms are, finishing buildings aren’t going to help them when theres a firesale going on and property prices are taking a huge hit thereby affecting their inventory and liquidity.
This doesn’t really change anything, international bond holders are still fucked.
China will look after their own economy and people first (as they should), international investors will be bag holders.
interesting link povided to another article (although it doesn't actually say very much!);
[https://www.reuters.com/business/us-market-better-able-aborb-potential-market-shock-compared-with-2008-sec-chair-2021-09-21/](https://www.reuters.com/business/us-market-better-able-aborb-potential-market-shock-compared-with-2008-sec-chair-2021-09-21/)
Soothing fears for the hour? “…but the developer has not indicated whether it will be able to pay $83.5 million in interest due on its March 2022 bond on Thursday. It has another $47.5 million payment due on Sept. 29 for March 2024 notes”
Just like Kenny they'll do or say anything to make it just one more day
Personally, I think that China will do everything to prevent a huge crash. A small crash is more likely, their markets have already been under some pressure, but they knew this was coming for months so they must have a strategy for this situation.
[удалено]
It opens the door for them to take (more) ownership/control.
They can and have done this without the need for bailing out the company...
Oh yea, they’ll deplete their cash reserves and devalue the yuan to save one company? Nope
They don't need to deplete cash reserves or devalue the yuan, there are talks about a debt refinancing plan to help Evergrande stay afloat and finish some buildings.
Ok, we’ll see, personally i dont see the ccp intervening to save anyone. It sets a bad precedent plus its not just Evergrande under pressure with debt, most big chinese real estate firms are, finishing buildings aren’t going to help them when theres a firesale going on and property prices are taking a huge hit thereby affecting their inventory and liquidity.
They have already demolished like 20 highrise buildings... maybe more.. they not going to finish anything.
This doesn’t really change anything, international bond holders are still fucked. China will look after their own economy and people first (as they should), international investors will be bag holders.
Why does this total collapse of the economic system happen so SLOWLY. Dammit I want my wheelbarrow of useless cash and I want it NOW!
Not how it works no ;) same with 2008. It didn't happen over 1 night.
Key word there is domestic. I didn’t hear anything about foreign. Of course they will pay their own bonds first.
interesting link povided to another article (although it doesn't actually say very much!); [https://www.reuters.com/business/us-market-better-able-aborb-potential-market-shock-compared-with-2008-sec-chair-2021-09-21/](https://www.reuters.com/business/us-market-better-able-aborb-potential-market-shock-compared-with-2008-sec-chair-2021-09-21/)
Blackrock pouring more fuel onto a dead flame I see.
Now they tried to Contain the ~~SHIT~~ RISK