International China 2nd largest real estate firm close to collapse. Over $300 billion in liabilities

[MicroBrew]

UPDATE

China asking state-backed firms to pick up Evergrande assets - sources
https://www.yahoo.com/finance/news/china-asking-state-backed-firms-110647783.html

Just as YouTubers SerpentZA and Laowhy86 said, the CCP is trying to bail out Evergrande without officially making it a central government bailout.


HONG KONG, Sept 28 (Reuters) - Beijing is prodding government-owned firms and state-backed property developers such as China Vanke Co Ltd to purchase some of embattled China Evergrande Group's assets, people with knowledge of the matter said.

Evergrande, saddled with $305 billion in liabilities, is teetering on the brink of collapse. But the central government is unlikely to intervene directly to resolve Evergrande's crisis in the form of a bailout, according to six people, including four in government and regulatory bodies.

 

[Natural Order]

China's economy is a collosal house of cards far worse than anyone really wants to publicly admit and their construction industry is fucked. Evergrande cannot survive on its own and will only make it out by the CCP bailing them out which, if they do, may be done very quietly and under the radar.

China was building whole cities with no people in it because real estate was the only 'safe' investment its citizens could make. There's countless huge developments that are left unfinished in China as developers go bust and they regularly demolish not just one or two towers but a dozen of them at once. The scale of the problem is pretty astronomical: it's estimated there are more than 65 million empty apartments across the country.

Holy shit, I think we just solved California's housing problems! Ship em to fucking China, there's all kinds of availability....lol

 

[NoGoodNamesLeft]

#GME

 

[Snackbar]

300 billion in debt? Wow, it's doable but will need to pick up some extra hours, cut out morning coffees and snowball the shit out of those payments.

 

[Fluffernutter]

Too big to fail

 

[freakroor]

the government should bail them out, or else the terrorists win. This is what the USA taught me.

 

[Yehudim]

UPDATE

China asking state-backed firms to pick up Evergrande assets - sources
https://www.yahoo.com/finance/news/china-asking-state-backed-firms-110647783.html

Just as YouTubers SerpentZA and Laowhy86 said, the CCP is trying to bail out Evergrande without officially making it a central government bailout.


HONG KONG, Sept 28 (Reuters) - Beijing is prodding government-owned firms and state-backed property developers such as China Vanke Co Ltd to purchase some of embattled China Evergrande Group's assets, people with knowledge of the matter said.

Evergrande, saddled with $305 billion in liabilities, is teetering on the brink of collapse. But the central government is unlikely to intervene directly to resolve Evergrande's crisis in the form of a bailout, according to six people, including four in government and regulatory bodies.

China has been strong arming the rich to avoid having to pay for things themselves

I don’t feel sorry though because you necessarily have to get in bed with the CCP in order to remain rich in China

 

[MicroBrew]

China has been strong arming the rich to avoid having to pay for things themselves

I don’t feel sorry though because you necessarily have to get in bed with the CCP in order to remain rich in China

No sympathy for the Western financial institutions / banks who get shafted by Evergrande. They deserve it for aiding and abetting the CCP.

 

[LangfordBarrow]

In Evergrande's case, the real estate side of the company - which is the main business - kept burrowing and burrowing to build more and more apartments. While they did sell a lot of real estate, they kept sinking the profits into further real estate purchase, along with burrowing more money. They seemed to be following the Amazon business model, i.e. Amazon was not showing a profit for the first several years but was running on the idea that it was investing for the future.

The big question here is did they leave a map to all this burrowed money?