Current Events > Economics
China’s Property Problems Go Beyond Evergrande. Real Estate Stocks Take a Beatin
Ptarmigan:
China’s Property Problems Go Beyond Evergrande. Real Estate Stocks Take a Beating.
https://www.barrons.com/articles/china-evergrande-property-problems-51631815303
--- Quote ---Remember that guy who ran for mayor of New York City by shouting, “The rent is too damn high?” Chinese authorities have taken his lament to heart, setting “reference prices” for secondary apartment sales in half a dozen expensive cities. That signals a problem that goes well beyond the spectacular crackup of overleveraged developer China Evergrande Group .
Beijing’s tinkering with China’s valuable internet platforms may concern global investors more. But housing is China’s perennial challenge as it seeks to balance capitalist dynamism with socialist ideals and a Communist power monopoly.
Real estate construction and investment has been both driver and outlet for the country’s burgeoning wealth, accounting for some 20% of gross domestic product.
--- End quote ---
Evergrande is China's equivalent to Lehman Brothers.
Ptarmigan:
China's Evergrande: What to know
https://www.foxbusiness.com/markets/china-evergrande-real-estate-lender-property
--- Quote ---One of China's largest lenders, Evergrande Group, is facing billions of debt with the threat of default. The crisis is sending shockwaves through global financial markets, including in the U.S., where the company is being compared to Lehman Brothers, whose implosion in September 2008 sparked the Great Financial Crisis.
FOX Business takes a look at Evergrande's business and its role in the world's financial system.
EVERGRANDE GROUP
Evergrande is one of China's leading lenders for everything from property to autos. The company has 2.3 trillion Chinese yuan in assets, which equates to about $355 billion in USD, according to the lender, which employs 200,000 workers.
By 2022, Evergrande expects to reach 3 trillion yuan in total assets, 1 trillion yuan of annual sales and 150 billion yuan of annual profits and taxes to become "one of the world's top 100 companies."
--- End quote ---
Evergrande could crash.
DefiantSix:
--- Quote from: Ptarmigan on September 20, 2021, 06:35:21 PM ---Evergrande could crash.
--- End quote ---
:popcorn:
old dog 2:
How many ghost cities can you build before the $#!+ hits the fan?
Interesting analysis here:
https://zeihan.com/a-failure-of-leadership-part-iii-the-beginning-of-the-end-of-china/
Eupher:
Never fear. As long as Joe Biden is President, China need not worry about a damned thing.
They have Joe in their pocket and they'll pull him out and play that card when they need to. Easy peasy.
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