How Evergrande Became China’s Biggest Financial Headache
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- เผยแพร่เมื่อ 28 ก.ย. 2024
- Once one of China’s most successful developers, Evergrande has been labeled a defaulter and is more than $300 billion in debt. Now it's racing to restructure as bondholders warn of possible enforcement action.
#Asia #TheBreakdown #BloombergQuicktake
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If I owe 300 Billion dollars, the lender is in trouble not me.
Unless the lenders are a couple of guys named tony, mario, chris, lorenzo, paulie, silvio, mikey, or gino then your kneecaps are in trouble.
Call the bankruptcy court...............................BUT NOT FOR ME!
@@MionMikan
worse... the person is named Xi
Xi you in the next life
America: hold my 30 trillion dept😂
Who knew building ghost cities would not be profitable?
@@Fishmans Sure, if you can borrow money and not pay it back, you can do remarkably well.
pretty much its a large organized Ponzi Scheme
geeze I would of never figured it's not profitable ..LOL But looks sooo pretty.
@@psychoaztecs how is it a ponzi scheme? Buyers pick out a flat in a building and put down payment on it and wait till it finishes building before moving into flat. It's no different than New Home Construction in the US. Buyers pick out a lot and put down payment on new home usually 20% then the builder promise to finished building within timeframe. But there's a clause that says in the event unforeseen situation...like the pandemic. The delivery time maybe extended for however long.
In Evergrande situation.. The pandemic, lockdowns and supply chain issues have cause the company to stop construction.
Eventually bills mount up and the company unable to pay it because no money is coming in..
I see this happening in the US future because supply chain issue causing delays in delivery.
The developers in China have different decision making model. In China, it's IF we build it, people will come. The urbanization rate is 60% today. 20 years ago was less than 30%. All of the "ghost cities" you saw 10 yrs ago are now some of the most desirable new districts today. Every 10% of the Chinese population is 150 million people or like 50 million household demand. It profitable when the economy is still growing.
Virtually every business failure story is about trying to expand too quickly, and taking on too much debt. As much as people extol the idiom "If you're not growing, you're dying" you never hear about a business failing because it stayed small, stayed profitable, and never took on any debt.
If you want to win in the business world you either grow as fast as possible or your competitors out produce you out research you and ultimately put compete you.
@@curtisw0234 grow fast without profit by using investors/bank loan ,Nice recipe for disaster
Wow, thanks for this comment
China China , i hail thine many houses
Sailing close too the wind + a covid crisis changed the parameters of the market. It would have worked if it were not for covid.
Another example of a business building its foundation on an infinite money fountain. The problem with that, is that there is no such thing as infinite money. As a business you should always be prepared for what happens when a revenue source dries up.
There is absolutely such thing as infinite money. What is money? It's a concept. An idea. Are ideas limited? No.
But is the demand for money unlimited? No, it is not. If you print an infinite supply, people will lose interest and thus it will lose value. Money is basically just the arbitrary value we've assigned to the things we actually value. Like toilet paper.
The toilet paper is worth more than the money. The only thing currency does well is endure. But it doesn't endure forever. No currency endures forever.
Diversify your investments. And don't put all of your faith into a single story. Lookin at you, China.
Dont think for a moment that this case is a problem in the eyes of the Chinese government, they let it happen for a reason. The Chinese Party is far more clever and sinister then ppl think
@@lostinbravado And teach us, what is more valuable than money? Crypto?
@@lostinbravado Well then gimme all your money I got some toilet paper for you. Cash only plz no crypto
@@lostinbravado exactly it’s a concept that helps us see the line between the economic classes and the rich love to see the line being pushed further and further away (to space/thanks to Amazon workers) from them.
Those suppliers that waived Evergrande's debts are probably not too happy with their decision.
They had no say in their decision lol
@@Tounguepunchfartbox false, the CCP explicitly told them they could choose to waive or disappear. That’s a choice isn’t it 😅
@@hectoralejandro9883 Imagine a goverment bailing out a large corprate entity because it's too big to fail
**PHONE RINGS**
-"Sir, he bought Evergrande stocks"
- *Bogdanoff* : "DUMP IT"
DÖMP IT MÖRE
I can hear the voice
"Debt-fueled strategy..." whew, enough said!
At some point this mirage bubble must reach bursting point for reality to strike home.
The problem is even debt can be sold they just put a date of 10 or 20 years on it and say put interest on the debt so if the debt is 10 million they will add on 10% extra so now the debt to be paid is 11 million for example and someone will buy it looking to make profit of 1 million lol its crazy
@@Peter-je6td Evergrande bonds trade at like 20 cents on the dollar so your estimate is a bit optimistic.
@@aleksandersuur9475 i know it was an example and if it comes to it the ccp will buy the bonds via a state owned company just to buy its self time to pay back all the debt rinse and repeat like paying your self its a way of just delaying inevitably they get to change payment date with every new change of hands
America: hold my 30 trillion dept😂
@@Peter-je6td yeah and hopefully that works out for the world.. Investors in China, especially those of SOE, need to be wary of this.
The whole sector is a bubble.
Was a bubble. *was*
@@aajohnsoutube still is, even as it deflates.
America: hold my 30 trillion dept😂
The Chinese government actually forced the CEO to sell his yacht and artworks to pay for the company debt. Image that happening in US lol
We can only imagine :')
Sometimes China will do something that is painfully obviously needs to be done. I paused immediately when i heard that and came looking to see if anyone else did
We can only dream 🛌
It's just a distraction from the scale of the theft. Imagine robbing an entire grocery and having to return only the broccoli.
@@TreesPlease42 well what happened during bailouts in the US? I think even broccolis are still missing... Proabably those in charge would be in trouble now right... ? Right?! Oh hello JP Morgan, Goldman Sachs, Bank of American, and Morgan Stanley :) Welcome to debt driven economy. Just look up the charts of wealth inequalities, how pandemic and further "money printing" makes it even worse. Still making a ceo pay for that is something that just sends a message, a very important one, that if you can't manage your company, you will be the first one to pay for that. That is called responsibility.
Lol I love how these companies can borrow billions and then get bailed out when they fail with no consequences.
they are not going to get bailed out. xi will nationalize all the major business with time. going back to mao era
Bigger they are harder they fall
I'm waiting for China to fall and there is no bailout!
@@1one1won if China falls Amerikkka falls too no?
@@sal88hossain that's still a bailout lol
@@stefanc4520 thats to avoid the normal employees from losing their jobs. Trust me. China will punish the executives hard
When I was on the bullet train from Shanghai, I noticed how fast they were building every where. Even my mom's home city looks completely different, massive round abouts and roads I never thought would ever be built.
Are these new construction works backed by debt or equity?
@@wyw201 most likely debt, it's a farming town that's been expanded slowly over the last 25 years. I was back in late 2019.
@@BGRUBBIN What led to municipalities collapsing during 2008 in the US is that government infrastructure debt is backed by credit default swaps with financial firms. As such, when Evergrande went down, the fear is that it will drag investment banks and funds down as well. Hope China regulates the trading and formation of derivatives on government debt and bonds.
@@wyw201 just like America did, thanks for the info
@@wyw201 As far as Im aware, this kind of financial gimmickry is banned in china after the 2008 crisis
That company was the first of many who have gotten into financial trouble there and I feel bad for the people who purchased property unseen and that is terrible and a disaster in the making.
who cant see that coming?
Mostly investors, small and big trying to make a killing on margin.
Feel bad for those who purchased property, yes, but they are just the first to feel the pain. Soon all of us will suffer from the outrages greed and corruption of the politically powerful, people the world over are about to see their quality of living drop by half and it will be decades before we scratch and crawl out of this mess.
Most people cannot afford those apartments, only speculators who brought the apartments and left them empty.
America: hold my 30 trillion dept😂
Those Ghost cities are apparently already paid for my the people who bought properties as an investment so it could be their second or third home. The only problem is people who actually want to buy a house to live in can't afford one. Similar situation in so many parts of the world right now
Not really, people in China paid for "real estate" that was not yet built, whereas in most other logical countries we do not buy anything that is not complete.
I don't think so. These ghost cities are actually what have caused the crisis. If they have all been filled with thriving community, none of this would have ever happened. And also the government would have bailed them out if they ran into financial trouble.
Apparently these ghost cities were built for all the wrong causes. First it was government themselves who supported their project and flooded them with loans. Of course then government was rich and loaded, never thought of it through enough. Then it was the individual real estate investors who began putting down payment before even the construction began , thinking they might sell it to the real settlers at higher profit. And surprisingly no one showed up. Why would they??
Turns out you can't just build a city and expect people to live. Besides when building new housing infrastructure, the focus should be on the people who would live there and call in their homes and not the people who would seeks as an investment. Companies should have focused on building someone's home and not their real estate portfolio.
There's a mistake property developers always seem to make even where I'm from , There's always an assumption that land /property will always appreciate, which
More often than not is true but they over estimate the appreciation rates time and time again .
I've always heard that real estate is the best investment, because it always appreciates.
@@SRR-rh7id it does. Most rich folks made money in real estate because it always go up. In the long term.
@@TheBooban is real estate a superior investment as compared to dividend stocks?
@@SRR-rh7id real estate can go up by like 200% over ten years which is not normal but for growing cities it is and if it goes up by 2000% there's a societal issue as people's income rarely rises at the same rate...while something similar can happen in stocks and its no problem if the business is really growing and your not in a bubble... both have their risks but quick money is stocks and slow money
Brian Mwaura: That's a big part of what happened to banks in the great recession. Though the vast majority of real estate in real (inflation adjusted) terms will LIKELY end up appreciating over time, there can definitely be steep downsides in the short run, in economic hard times. People running real estate empires SHOULD know this -- there's lots of data showing it out there.
I saw this coming a long time ago, empty apartment buildings all over the place I said to myself I hope they know what they are doing, I guess not.
And 8 months later ..... the crash!
Bloomberg, the company that tell you the business news after it happened.
This is what annoys me. I remember those protests. Our media made it seem like it was people rising up against the gov. When in reality they were protesting a company.
Who’s our media?
I have been trading for about 6 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points . I try to do top down analysis but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?
Your problem could be your stop loss is too close or you're watching your trades too much. Place it and walk away. Or you could just give up, trading isn't for everyone.
Don't listen to him, don't give up. Trading takes time(months, even years) to master, even the pros learn everyday. Never the less, if you lose money no matter which side you take, maybe you need to look at how you are managing active trades rather than how you are entering them. My advice, find a mentor . And also, try incorporating the use of oscillators, Bollinger and pivot points into your strategy. And most importantly move to higher TFs(4h or 1D preferably), you'll thank me later
You're correct, I don't lose money every single trade, but my main problem is trying to let my runners run. Very rarely do I catch big moves . Instead they go a few pips in my direction, then go against me if when I try holding them. Also my entries could use a lot of improvement. A mentor would be amazing, but getting one is easier said than done. If it's not too much to ask, do you know any legit ones?
To be honest, I’ve loss greatly on trading too but I found out that the only solution at my situation personally was to get a professional trader who managed and controlled my trades. You can get one too. For months now I’ve been trading with Vivian Klaine Morgan and I can say I’ve made more than my loss now.
I think I have seen this name on a trading forum before, And how may I contact her if that isn't too much to ask
The chinese economy grew on credit and now all that debt is starting to have an impact in many sectors. Lack of oversight, rampant bribery and corruption and other shady business practices have taken its toll. Local governments are heavily indebted as well that they have cut the salaries of civil servants. Everyone just got greedy and wanted a piece of the pie. On top of this their zero covid policy is hurting the economy as well by suddenly disrupting economic activity wherever an outbreak occurs.
Which major economies didn't expand on credit ? This is not peculiar to China. Here in Malaysia, corruption is way more entrenched in public and private sectors. Are you surprised that organized crime bosses had become billionaires here and rub shoulder with highest level of government instead of rubbing shoulders with prison inmates? Most of the procurements/borrowings in large companies here were facilitated thru kickbacks. And I am pretty sure all these are happening in the whole of Southeast Asia and throughout the world. To deny is because of ignorance.
@@maxdc988 Yes most economies expand on credit, but most of them did eventually grow to dominate a market (e.g. japan with medical equipment and US with semiconductors). I can't think of a healthy, innovative company in china that isn't software related.
@@maxdc988 you don’t see major foreign companies accumulate this much debt like Evergrande has. And expand into creating businesses that has nothing to with its property business. Property development in china accounts for 30% of its GDP, what other major economy has a sector dominate this much? Local governments in china have accumulated $4 trillion in debt in just the last few years and their main revenue source is from property sales, they are not even allowed to levy taxes. How is that sustainable?
@@alainw77 So how great is the difference from province to province that this has kept going without the government intervening that the country got overbuild on real estate.
That is why the CCP went after all the rich because they are debt-ridden.
Oh well such is greed speculation and fear of missing out ... well they didnt miss out ... they got what was coming ... no sympathy for people who huddle into these concerns only to get burned !!!!
These Bloomberg Quicktakes are excellent
Yeah great story, SVB, first republic,credit suiss these Chinese banks are collapsing one by one.
"Biggest Financial Headache" someone is forgetting fast train system ;p
And local government debt vehicles
Chinese highspeed rail is actually overall profitable , see reports by worldbank, marcopolo etc. All these doomsayers just focus on a couple of unprofitable routes which government subsidizes and extrapolate it .
@@Fire-ci4se 900 billion in debt with 24 million loss per day must be a real bonanza !! very cool !
@@infango Read the world bank report if you actually care about the debt. It is not that big a deal . 24 million loss a day is like negligence for China's 15 trillion dollar economy
HSR are state run company and owe debt to State bank. It is CCP borrowing from itself or printed money. They can forgive their own debt to themselves easily.
“Everything in Evergrande belongs to the party and state ( including your interest payments and principles) “ - Hui
And now it's debt belongs to the party too.
Like poetry.
@@sprague49 what debt
@@faranocks confusing
@@Bluesvxbe I'm going to reply to this by giving a "like" here, because the current counter is at 88, the lucky number for Chinese.
Rebecca Choong Wilkins. Absolutely gorgeous.
Whatever dude. You really have low standards then.😂😂😂
@@merceywatts5118 its okay more for me
12:10 I went to the same elementary school as Chen. I remember in the early 1990s when I was a student in the school, Chen made an generous amount of donation to the school, in return the school required each of us students to write a personal thank you note to show gratitude to him.
You are just making that up no one believes you.
Are you joking ???..... What are the chances ???.....
@@4evertrue830 you don’t need to believe me but I’m telling the truth
@@MeiinUK I didn’t expect to see him again. He is a low-key guy you rarely see him taking any interviews
They all seem savvy until the bubble burst 💥
I really like how the government didn't want to bail them out. All companies need to be held responsible for their own bad decisions and not the taxpayer.
They’re bailing them out behind the scenes. Chinese state has many ways they can direct money and alleviate debt.
@@Tounguepunchfartbox exactly, that’s because all these corporations the state has a hand in it. China the country is basically a company, like a Super Amazon with nuclear weapons.
You're kind of clueless. The government got them there, nothing they did was possible without the budget assignment system of mainland China, the companies got money for their activities directly from state-controlled banks, the stuff they made got sold to big companies than then sell to end-users. This is a full circle back to government and it will get bailed, just not directly.
You are right .
Build building that no one wants to live in? Well that's a recipe for disaster.
Basically the 2008 crisis all over again, people borrowed money but can't payback.
This happens.
Usually once in a 3 decades
The construction on Heinan that was deemed illegal by authorities most likely serves as a warning to the investors behind the project, likely offshore investors, that they should be careful and not demand too much or their assets would be deemed illegal.
I want the narrator to recite the eulogy at my funeral
Chinese government assuring that this is not a problem for the world. I wonder where I have heard that before?
No one is talking about the government’s strict policies that are affecting evergrands market and leading to its failure rn. Closed boarders , restricted investment from foreigners and foreign businesses in China. All this is part of why evergrand is defaulting rn and no one’s talking about it 🤦♂️
That's because those aren't the main issues. It's the 3 red lines to curb the debt crisis, CCP over-exuberance at their successes of handling covid 19, and need for capital to flow into more innovative and national security initiatives that have caused this.
This gonna end badly.
The Chinese government NOT bailing out risky or incompetent behavior, imagine that. We could learn a thing or two from the Chinese!!!!
Lemme guess: If your bank went bankrupt, you'd want a bailout...
@@themasterofdisastr1226 FDIC protects deposits. There should be no protections for the 'C' suite's immoral, risky, unethical behavior.
The whole Chinese economy has a bubbled up, inflated debt situation, about to go off, it'd be a miracle if they can save it from popping!
Because there is not enough substance to the whole of china or there industries even the people have very little substance nothing in the country is built with substance and integrity it's all false😖😖😖😖😣🇦🇺
It's the holder of most of US debt and developing countries, what do you think will happen????
The USA has the largest domestic debt and accordingly comes to a halt periodically.
@@rext8949 China has the biggest Economy in the world and a growing middle class of 400 mil. It's the largest exporter and importer of goods and has a population of 1.2 billion. It's the largest trading partner of most countries. Instead of hoping for a global catasteophy, why not a change in government???? When CCP and PLA leadership falls then that's fine.
Western media has been saying that for over 30 years, it's never been true.
In this era where we wake up to changes,it is very much advisable to have a means of multiplying your money so that you won’t wake up stranded and confused.
我是93年生人，年轻一代恰逢计划生育，独生子女成长于房地产在中国的疯长期。现在的年轻人父母老人名下都有多套房子，我一直坚信泡沫终会破灭。但是我们不能否认房地产在中国经济史的历史使命，它承托了中国人逐步富裕的过程。现在，是如何抽身而出的问题。给他点时间吧。
I think the question is if we see a massive crash in real estate or a long and protracted stagnation of the economy. My guess is we see a significant slowing similar to Japanese crisis. Hopefully not a crash and fortunately that looks unlikely.
Can someone translate this to English?
wow, at 4:35 look like NOBODY living in those buildings. I wonder how badly they were built in the first place.
“This is a market event, it should be handled in market oriented way”
Could you swap USA debt with Evergrand debt?
Incompetence and Greed..... Not the best combo.
the video about Evergrande's 100 billion in 17 mega Disneyesque amusement parks that are now half built and never will open, was a mind blower. In 100 years they will make for some interesting ruins.
If this were in America the government would immediately bail them out with the taxpayers dollar and allow them to keep ducking up, props to Xi for keeping them accountable
This is a case of GREED
An end to all cannibalistic business models, alibaba, evergrande, Tencent and many more. Huawei is one of the stars that's on the right track, advancing the people rather than enslaving them in the long run.
Huawei is a dead company. US and global sanctions absolutely gutted it.
LOL, the world has 8 billion populations, sanctioned by a few countries are not going to affect much, furthermore, Huawei does not intend to do business with the US in the near future.
Oh well, centralized state run economies NEVER work. Some body always looses, usually the proletariat, by design.
@@snowycatinseattle At least China has the balls to “remove” billionaires, the US should take notes.
@@alx8571 they also make you disappear if you say anything about the gov't
@@alx8571 China left millions to lose their life savings. Where is the help for them? Exactly. Also, sorry idiot, we got TARP back from the banks.
@@gordonlam2757 Bye-bye billionaires 👋🏼
@@jondoe6926 Who did they leave behind? What are you even talking about?
It appears people in China do not buy these properties to live in but as investments..So they generate no income until someone buys it from the owner. Many of these buildings have few occupants according to other videos on the real estate crisis..
this sounds exactly like NFT, but you actually own something.
They keep calling this a headache, but it’s a malignant tumor.
Almost all areas in China are high-rise buildings. Only people in the countryside have single-family houses.
To be honest, while I hate the Chinese system especially in terms of human persecution, billionaires are not exempted from the rules unlike in most capitalist states
In China, nothing else is bigger than CCP.
CCP = China and China = CCP.
If my home value was halved it would mean nothing to me, would not effect me in any way. That's today, not 30 year's ago and certainly not the case if it wasn't completely built. It's unimaginable to me the horror of knowing the money I had saved was lost either in financial products or an unlivable home I purchased.
Now I now why when you search Violet evergarden, it searches evergrande
There was a dude who predicted this in 2012
Andrew Left?
Who is it? The Simpsons?
You should invest in India. Things are slow here, but being a democracy and an open market we don't build ghost cities.
Really? Go to Hyderabad and see. Nothing is occupied fully, yet construction on full swing. China's ghost cities was what came to my mind when i saw this mess here. Hyderabad real estate is in a bubble. Not a huge one, but it is growing into a huge one at a very fast pace.
Invest in what indian toilets?
Why would someone build something so expensive when theres not even a demand for such properties.
Speculation...
Ah, yes, the Risk is controlable and everything id under control. Just as coronavirus.
Why would a real estate builder buy football teams and water bottle companies? It doesn't make any sense.
He was thirsty
China does family money and is not unbiased basic accountancy or accounting....
Hello, Rebecca.
If you invested your money just go and occupy any building of your choice finish or not finish
China's 8% growth rate last year positions the country well to deal with this problem.
恒大在我们安徽一个四线小城市都不通公交的城市边缘地区建了三个商品小区，售楼部都关了，全部烂尾🤣
super idol language omg
true. evargrade is just a hype company.
Hello are you from CHINA ?
Omg, i love bing chilling
Using A VPN?
Isn't that Illegal in your authoritarian country
I thought Credit Crunch was a breakfast cereal…..
As the old saying went, if I owe you a thousand bucks, you’ve got me.
If I owe you a Million dollars… Ive got you…
Evergrande has defaulted already
Multiple times
Wow! This was very interesting… 2-3 months ago
Bloomberg still refusing to tell the whole story only telling as least as possible. I always thought financial news is the best news, but these days I'm turning to small independent researchers.
Where did the money go though? They borrowed money to build houses. Can't they just sell those houses?
Or is it because they don't have inventory left? $300B worth of houses are unfinished?
this is just 300billion,dont forget 2 trillion debt bubble china has for building thousands of km high speed railway network
We spent 2T on Afghanistan. I'd prefer the rail system
@@ryccoh you have 0km high speed rail network 🤭
@@annarascala2641 nah we got a few hundred miles on the east coast
@@ryccoh which bullet train?
@@annarascala2641 Amtrak Acela
Yo Bloomberg. You got the CEO/founder's name wrong. It's Xu Jiayin
Evergrande is not the bigest financial trobule. Local goverment debt is.
This is a giant version of the Great Leap Forward, when ordinary citizens turned all they had of iron into pig-iron, by backyard furnaces, because this was the only method they had to try to follow the state's wishes to try to gain some prosperity.
So who is giving out loans when there is no clear plan for payback. If he defaults, who will pay the investors. How do they regain their money?
China state owned bank gave those loan mostly
$300 B DEBT
Ohhhh noooooooooo 🤣🤣
easy peasy .. they're restructuring LOOL🤣🤣
If you owe a million to the bank and can't pay it you are in trouble. If you owe $300 billion that you can't pay than the bank / government is in trouble!
This was all about GDP growth. Now it's time to pay. 20 years of stagflation. And forget about surpassing the US GDP.
And this is why when you're doing any sort of business with red Chinese, you should always assume they're lying to you in some way shape or form.
It's literally baked into them since childhood after all.
I'm actually surprised that the Chinese housing bubble hasn't popped yet. I saw it coming many years ago.
Introspective
Is it just me, a cultural thing or do none this building projects look like they would create a neighbourhood you would want to live in?
The buildings for itself do not look bad but it seems somewhat copy paste
It's a cultural thing to some extent, but also just the way society is structured. I live in an apartment complex with nearly 60 other identical-looking buildings (about 12-20 floors tall), and honestly I don't really mind. Of course, if the building looks attractive it's a bonus, but I never really interact with my neighbours or others in my neighbourhood, and they never really interact with me. There are so many people here, and relationships in cities aren't really based in neighbourhoods. Also for Chinese people Fengshui is important and the buildings need to have north and south(I don't actually know much about it)
@@joannaxuan4265 Most new neighborhoods in Canada also use copy and paste housing with parks and business plazas dotted around. Unfortunately, our preference for two-story houses with a backyard and driveway is significantly limiting housing supply, my home province of Ontario which takes in around 70% of all new immigrants that enter Canada is suffering from a severe housing shortage (the worst housing market of any subnational region in a G7 country). We need to add around a million new housing units to catch up with demand.
many will be your friends when your UP THERE... but ALL of THEM will DISAPPEAR when YOU'RE going DOWN... AND THAT'S A FACT!!!!
This is why many overseas investors prefer to invest in the UK. The rule of law has meaning in our courts and even the government is not above the law.
I can't imagine running business in china while also not trying my very best to merge wealth and residency into the untied states.
What's a success story? Building houses with borrowed money? The success is selling them afterwards!
Music to my ears!
I really like how there's no apparent angle here. It really is just a video trying to explain an emergent situation in another country.
This video is very misleading. Demand for properties is driven by backwards laws and property being everyones primary financial asset, and the majority of the buildings have serious structural issues. Australia is about to follow the same path.
You can’t just build the hardware without a solid software, a stable economic political social system.
“Won’t bail out Evergrande”
Translation: “Actually the Chinese govt is broke, nobody accepts wampum”
What a waste of human labour and resources to just wreck those almost-finished buildings.
that's what happens when we overproduce. we've had crisis' of overproduction for a while now. due to the repeated extraction of the surplus by the rich, the worker's have no money to buy the commodities necessary to reproduce the system. if you build 50 houses, but only 10 people have wages high enough to buy 20 houses, that still leads to 30 empty houses. however, the rich really don't want a repeat of when they increased wages in the past, because increasing the right's of the workers leads to more workers asking for more rights. the same could be seen when amazon during the pandemic destroyed so much of it's product, not because they couldn't find buyers for it if they increased wages, but because they would rather destroy product then increase the amount of people who could buy these products by increasing the buying power of the populace. the buying power of the populace has steadily been going down in tons of places other than china, and now that lowering of purchasing power seems to be coming to china now.
This is the karma for tianmen
And COVID-19
At least get the spelling of Tiananmen right
lol
Common people are loosing their hard earned money.
Freedom and capitalism are a combustible combination. Regulators are not doing what they were supposed to do.
Chairman 's name is Xu Jiayin
Get rid of the background noise
It's about Gamestop and predatory failure of regulation by the SEC, DTCC and willful enabling of the exact same issues as 2008. I know you wanna write about it, too bloomberg, but we know who owns you.
Explain what influence an American company named Gamestop has on the Chinese housing development sector which is 20% part of China's GDP and has faulted on its loans foreign as well as domestic? Pretty normal that the economy is a bit wobbly when a company goes bankrupt that thought it was too big to fail, especially if it's in the highest GDP earning sector and promoter of growth in China
He looks like a lil Winnie the Pooh
not lying, on monday im loading shares on top meme stocks
Time is a flat circle.