- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Evergrande, china's largest real estate company is on verge of collapse
Posted on 9/26/20 at 4:17 am
Posted on 9/26/20 at 4:17 am
They sent a letter to the govt asking for a wee bit of help (they deny they sent it). Two banks have cut off their line of credit, all five lead banks are huddled up wringing their hands, their bond prices tanked by over 20 percent, the stock price dropped almost 10 percent (would have been more but the market expects/hopes the govt will bail them out)
Here is their financial position in a nutshell (a yuan is worth about 15 cents US). They owe 900 billion yuan , their interest payments are about 80 billion (this DOES NOT include bonds coming due) and their projected earnings are 33.5 billion.
They have borrowed all they can from banks, black market, etc. Now that banks are cutting off their revolving credit they cant pay squat in current expenses.
They have dropped their real estate prices by 30% (thats got to go over real well with the current owners of their properties who bought them as an "investment", wonder how long before their banks come after them).
If they tumble the entire real estate market will follow and its where the lions share of average chinese have their money parked.
Ole Xi is sitting on an awfully, awfully big bubble...what cha gonna do boy?
Here is their financial position in a nutshell (a yuan is worth about 15 cents US). They owe 900 billion yuan , their interest payments are about 80 billion (this DOES NOT include bonds coming due) and their projected earnings are 33.5 billion.
They have borrowed all they can from banks, black market, etc. Now that banks are cutting off their revolving credit they cant pay squat in current expenses.
They have dropped their real estate prices by 30% (thats got to go over real well with the current owners of their properties who bought them as an "investment", wonder how long before their banks come after them).
If they tumble the entire real estate market will follow and its where the lions share of average chinese have their money parked.
Ole Xi is sitting on an awfully, awfully big bubble...what cha gonna do boy?
14
Posted on 9/26/20 at 4:21 am to trinidadtiger
Link? I want to share.
Posted on 9/26/20 at 4:35 am to Doctor Strangelove
Doc, I just caught a blip of it on international news, you certainly wont hear anything bad about them from the msm. Googled them and read several different articles.
They are one of Xi's pet companies, they always invest in stuff he is pushing, its how they got so big into electric cars and some of this other nonsense that is dragging down the core business.
Its another sign that covid hit china much harder than is being portrayed to the rest of the world.
They are one of Xi's pet companies, they always invest in stuff he is pushing, its how they got so big into electric cars and some of this other nonsense that is dragging down the core business.
Its another sign that covid hit china much harder than is being portrayed to the rest of the world.
Posted on 9/26/20 at 4:43 am to trinidadtiger
The CCP’s impending real estate bubble might be one of the most underestimated financial crisis to occur in decades. As a frequent traveler to China, nearly every Chinese city has whole ghost towns of unoccupied apartments and office buildings that are owned by speculators. My biggest concern is that when this bubble pops, the whole financial world might get caught In the vortex.
Posted on 9/26/20 at 4:55 am to trinidadtiger
They need Chinese zjoe to get elected bigly
Posted on 9/26/20 at 5:04 am to Doctor Strangelove
Agreed Doc. And its the millions of chinese who have invested in second properties that will get their arses cut.
As Trump once said, when you owe the bank a million you go visit them to plead your case, when you owe them 100 million they come to you.
These big boys want to restructure, the banks are going to foreclose on the little fellas to recoup the losses...and their prices just dropped double digit and put them underwater.
Last number I saw, 65 million empty apts in china.
This thing could truly send the world economies into a nosedive.
As Trump once said, when you owe the bank a million you go visit them to plead your case, when you owe them 100 million they come to you.
These big boys want to restructure, the banks are going to foreclose on the little fellas to recoup the losses...and their prices just dropped double digit and put them underwater.
Last number I saw, 65 million empty apts in china.
This thing could truly send the world economies into a nosedive.
Posted on 9/26/20 at 5:29 am to trinidadtiger
Yeah I’m not sure I’m pulling for this one.
Posted on 9/26/20 at 6:33 am to Strannix
I don’t know how Joe could help them much. Sure some tariff relief would help but that’s not going to change a massive oversupply of housing.
Posted on 9/26/20 at 6:45 am to trinidadtiger
Dumb question but how does that affect the housing market here? I distinctly remember a few years back someone in the real estate business telling me that Chinese companies were buying up a ton of housing inventory here and turning them into rental properties. That was not only driving the prices up here but also creating a shortage of housing available in the market.
Posted on 9/26/20 at 6:55 am to trinidadtiger
quote:
Doc, I just caught a blip of it on international news,
A couple of bonds had trading halted
Here you go, y'all can analyze it, not my thing.
Posted on 9/26/20 at 7:04 am to Blizzard of Chizz
quote:
I distinctly remember a few years back someone in the real estate business telling me that Chinese companies were buying up a ton of housing inventory here and turning them into rental properties. That was not only driving the prices up here but also creating a shortage of housing available in the market.
I’m friends with a very successful Chinaman in my industry who has multiple mfging companies in China. He said that the Wealthy Chinese essentially mask their real estate investments in the US (Mostly San Fran/NorCal) hence the lack of abundance of properties.
I could see that being true.
Posted on 9/26/20 at 7:14 am to trinidadtiger
I guess they aren’t Ever-Grande
Posted on 9/26/20 at 7:15 am to trinidadtiger
Hahahahaha! Evergrande is about to experience the chi-com version of being '86ed.
Do you know if there were any code changes in the way the company was able to treat the RE for tax purposes?
What was the catalyst for this implosion?
Do you know if there were any code changes in the way the company was able to treat the RE for tax purposes?
What was the catalyst for this implosion?
Posted on 9/26/20 at 7:58 am to trinidadtiger
You could see this coming 4 years ago when they were building entire cities with ZERO inhabitants.
Posted on 9/26/20 at 8:09 am to BozemanTiger
quote:
What was the catalyst for this implosion?
Communism
Posted on 9/26/20 at 8:17 am to DMAN1968
Yeah, thanks for stating the obvious.
I was more interested in any actual policy the commies may have instituted so that the resident PT commies could get, yet another, "teachable moment".
Posted on 9/26/20 at 8:22 am to trinidadtiger
The CCP isn’t going to let them implode in the way you think. They will nationalize then or bail them out.
The bubble will continue to inflate further.
The bubble will continue to inflate further.
Posted on 9/26/20 at 8:22 am to trinidadtiger
Throw a couple more million at Hunter Biden. He’ll fix it with his vast experience in the industry.
Posted on 9/26/20 at 8:53 am to trinidadtiger
IIRC, didn’t IB Sceamin say that China was the world’s lone economic superpower.
Posted on 9/26/20 at 9:07 am to cokebottleag
All of these companies are really state owned at some point, no?
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News