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Financial crash fears erupt: China Evergrande defaults on payments - set for 'bankruptcy'

Insane Metal

Insane Metal

Member

CHINA Evergrande, one of the largest companies in the world, has defaulted on its vast bond repayments.c​

Such is the dire state of the company, experts now predict the company will announce bankruptcy in a "matter of days". According to Deutsche Marktscreening Agentur (DMSA), the collapse of the company could now have dire consequences for the financial system. DMSA itself has invested in bonds paid to Evergrande and did not receive interest repayments from the company.

The interest repayments were due to be paid on November 10 after it missed the deadline last month.

Due to these missed repayments, DMSA is now preparing bankruptcy proceedings against Evergrande.

Senior analyst Dr. Marco Metzler from DMSA, said: "But while the international financial market has so far met the financial turmoil surrounding the teetering giant Evergrande with a remarkable basic confidence - one can also say: with remarkable naivety - the US central bank Fed confirmed our view yesterday.

"In its latest stability report, it explicitly pointed out the dangers that a collapse of Evergrande could have for the global financial system.


www.express.co.uk

Financial crash fears erupt: China Evergrande defaults on payments

CHINA Evergrande, one of the largest companies in the world, has defaulted on its vast bond repayments and could be set for bankruptcy, a financial expert has claimed.
www.express.co.uk www.express.co.uk




Another souce:

apnews.com

Evergrande officially defaulted - DMSA is preparing bankruptcy proceedings against Evergrande Group

BERLIN, Nov. 10, 2021 /PRNewswire/ -- China Evergrande Group today again defaulted on interest payments to international investors.
apnews.com apnews.com
 
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chromhound

chromhound

Member
giphy.gif
 
godhandiscen

godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
Punished Miku

Punished Miku

Banned
I guess I don't really care if we get a credit crunch. For all the doom and gloom surrounding the headlines, I'm not sure it would really affect me at all. Higher interest rates on borrowing I guess, if you need to get a loan for something - which I don't. I think the biggest losers would be Chinese businesses and citizens that were owed money.

Whenever I hear about the eminent collapse of the "global financial market" my bullshit sense starts tingling. Just reminds me of previous bailouts. But I'm not a stonk expert like some of the galaxy brains on here.
 
godhandiscen

godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
Punished Miku said:
I guess I don't really care if we get a credit crunch. For all the doom and gloom surrounding the headlines, I'm not sure it would really affect me at all. Higher interest rates on borrowing I guess, if you need to get a loan for something - which I don't. I think the biggest losers would be Chinese businesses and citizens that were owed money.

Whenever I hear about the eminent collapse of the "global financial market" my bullshit sense starts tingling. Just reminds me of previous bailouts. But I'm not a stonk expert like some of the galaxy brains on here.
Click to expand...
Today inflation reports claimed we were seeing 6% inflation in the past 12 months, highest since 1990. I believe that most people will see the impact of this in a higher cost of living.
 
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M

MadAnon

Member
Meh... This is mostly China's problem. China's real estate market and financial system is not really that connected to the rest of the world.
 
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godhandiscen

godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
Bitmap Frogs said:
I have some hope because China is somewhat containerized due to their rules about investing there. It's not like the united states in that sense.
Click to expand...

It looks like tons of American and rest of the world funds are exposed to shares and bond in Evergrande

www.reuters.com

Funds exposed to China Evergrande stocks and bonds

Sharp falls in the stocks and bonds of China Evergrande Group have raised the spectre of losses for global asset managers with exposure to the embattled property developer.
www.reuters.com www.reuters.com

www.reuters.com

EXCLUSIVE China Evergrande's lenders weigh up loan losses, rolling over credit - sources

One of China Evergrande Group's (3333.HK) main lenders has made provisions for losses on a portion of its loans to the embattled property developer, while some creditors are planning to give it more time to repay, four bank executives told Reuters.
www.reuters.com www.reuters.com




MadAnon said:
Meh... This is mostly China's problem. China's real estate market and financial system is not really that connected to the rest of the world.
Click to expand...

No, there is direct exposure to the rest of the world. Moreover, the fear is that this will start a domino effect. Not only Evergrande was running on leverage for well over a decade.
 
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J

jason10mm

Gold Member
As gleeful as it is to see wealth vanish, I'd rather a controlled glide-in landing than a precipitous fiery crash with collateral damage :p
 
M

MadAnon

Member
godhandiscen said:
It looks like tons of American and rest of the world funds are exposed to shares and bond in Evergrande

www.reuters.com

Funds exposed to China Evergrande stocks and bonds

Sharp falls in the stocks and bonds of China Evergrande Group have raised the spectre of losses for global asset managers with exposure to the embattled property developer.
www.reuters.com www.reuters.com

www.reuters.com

EXCLUSIVE China Evergrande's lenders weigh up loan losses, rolling over credit - sources

One of China Evergrande Group's (3333.HK) main lenders has made provisions for losses on a portion of its loans to the embattled property developer, while some creditors are planning to give it more time to repay, four bank executives told Reuters.
www.reuters.com www.reuters.com






No, there is direct exposure to the rest of the world. Moreover, the fear is that this will start a domino effect. Not only Evergrande was running on leverage for well over a decade.
Click to expand...

Do you even understand how big is that 'direct exposure'?

Let's take a look at Blackrock. They have several trillions in assets and made over 20 billion $ in profits last year. Their Evergrade exposure is laughably small. Same with HSBC.

This exposure to Evergrade is tiny in comparison to what was, for example, just Merrill Lynch's exposure to mortgage securities in 2008.
 
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godhandiscen

godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
MadAnon said:
Do you even understand how big is that 'direct exposure'?

Let's take a look at Blackrock. They have several trillions in assets and made over 20 billion $ in profits last year. Their Evergrade exposure is laughably small. Same with HSBC.
Click to expand...
I am bullish still. I just feel that this is another warning signal of a potential future collapse. Evergrande is not the only company in China running on leverage. If the same happens to another 10 large companies, it could create a bit of a domino effect.
 
Hardensoul

Hardensoul

Member
Looks like interest is paid and default averted.

www.yahoo.com

Delayed Interest Paid, Default to Be Averted: Evergrande Update

(Bloomberg) -- China Evergrande Group looks set to avert another default in its biggest test since the property developer’s debt crisis began. Most Read from BloombergWhy Hong Kong Is Building Apartments the Size of Parking SpacesDo Prisons Deserve a Second Chance?Farmers Take on...
www.yahoo.com www.yahoo.com
 
Rest

Rest

All these years later I still chuckle at what a fucking moron that guy is.
Kenpachii said:
Fuck any of those banks, cull them all. Put china on the black list and that's the end of them on world relevance the next day.

investing in china is asking for instability.
Click to expand...
Alright, if China loses access to international financial transactions over night, what happens to all the manufactured goods they make that no one can buy any more? Don't say "make them somewhere else," because that takes years. Supply chains have to be established to move manufacturing. What does the rest of the world do during the several years that there is no access to manufacturing?
 
HoodWinked

HoodWinked

Member
Ya it's funny China makes everything and we give them our joke dollars that we've been printing non stop. One day they will wake up and see those dollars as toilet paper and stop trading goods for them.

It's insane, people who are for all this insane spending don't realize this all only works because of US dollar hegemony. Once the dollar loses reserve currency status we're fucked. It's only because the global reach of the military this is still going.
 
Wildebeest

Wildebeest

Member
HoodWinked said:
Ya it's funny China makes everything and we give them our joke dollars that we've been printing non stop. One day they will wake up and see those dollars as toilet paper and stop trading goods for them.

It's insane, people who are for all this insane spending don't realize this all only works because of US dollar hegemony. Once the dollar loses reserve currency status we're fucked. It's only because the global reach of the military this is still going.
Click to expand...

China's foreign exchange reserves peaked in 2014, and they hold a lower percentage of US dollars than global average. The vast majority of US debt is held by the US public for retirement funds, and so on, so they are the "biggest suckers". For nations, Japan holds more than China. Then UK, Ireland, and other global finance shenanigan centres, hold outsized stakes.
 
Kenpachii

Kenpachii

Member
Rest said:
Alright, if China loses access to international financial transactions over night, what happens to all the manufactured goods they make that no one can buy any more? Don't say "make them somewhere else," because that takes years. Supply chains have to be established to move manufacturing. What does the rest of the world do during the several years that there is no access to manufacturing?
Click to expand...

Produce them in other country's or better your own. Simple as that. China needs to bankrol there own country if they can't that's it. Any western bank that loaned money to china was asking for it. The same way as people are asking for it that still have there productions today in china. We have had a trade war since what multiple years now and corona over that. time enough.

Same goes for the chip industry, if u keep relaying on one country, don't start to look weird when you won't be getting chips anytime soon anymore when shit hits the fan. Expand and move away from them. China's world relevance is gone the next day and xing ping will be begging the west for support because its over for his reign the next day. Which will result in completely revamping there industry.

If populations in country's are getting problems because banks in there own country's start to tumble or have issue's. Put all of the leadership of those banks and the ones that made those decisions in jail for life and cull all there belongings. then about china, confiscate any share china has in anything west related to pay it off.

Sorry i have zero tolerance for banks gambling with people's money.
 
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Chankoras

Chankoras

Member
DeepEnigma said:
Just like the "bailout" in the US over a decade ago. The elite will always elite.
Click to expand...
Who knows but, they don't seem to operate in the same ways as U.S. they disappeared Jack Ma for a little while, sentenced a banker to death and been very vocal lately on a change of direction from growth at all cost to "common prosperity" , but this may be dual role of keeping people that threaten the party away from power.
 
DeepEnigma

DeepEnigma

Gold Member
Chankoras said:
Who knows but, they don't seem to operate in the same ways as U.S. they disappeared Jack Ma for a little while, sentenced a banker to death and been very vocal lately on a change of direction from growth at all cost to "common prosperity" , but this may be dual role of keeping people that threaten the party away from power.
Click to expand...
Animated GIF
 
DeepEnigma

DeepEnigma

Gold Member
Chankoras said:
What do you make of China's latest moves such as tech companies crackdown or banning of private tutoring?
Click to expand...
A telling of what's to come globally. Currently big tech is in bed proxy with the global establishment, but if they shall stray (sadly they won't)...
 
Tschumi

Tschumi

Member
Every bubble economy needs a good pop.

The bad thing to me is that Xi has made it pretty clear that he's happy to get nationalistic when the economy starts fulfilling less of the social contract..
 
Tams

Tams

Member
Lol, and to think there were shills (but don't you dare call them shills if you don't want to be banned!) on some other forums trying their very best to claim it had all been stabilised.
 
Nobody_Important

Nobody_Important

“Aww, it’s so...average,” she said to him in a cold brick of passion
finance.yahoo.com

Delayed Interest Paid, Default to Be Averted: Evergrande Update

(Bloomberg) -- China Evergrande Group looks set to avert another default in its biggest test since the property developer’s debt crisis began. Most Read from BloombergWhy Hong Kong Is Building Apartments the Size of Parking SpacesFarmers Take on ‘Post-Apocalyptic’ Food CrisisDo Prisons Deserve a...
finance.yahoo.com finance.yahoo.com

 
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godhandiscen

godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
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