Evergrande. Here's hoping CCP will step in.

maxsteam

I normally look at Chinese businesses and think, yes, it is a good business. I hope that the boss doesn't talk about politics or upset CCP in such a way that CCP steps in to educate the boss.

With Evergrande, I am actually hoping that CCP will step in and pick up the pieces otherwise I can see waves spreading around the world through the banking systems.

A bursting of the Chinese property bubble has been widely forecast. I hope that this is not the pin.

jimjames

I'm surprised that it hasn't had more market impact so far

jamei305

$300 billion debt - has to be the world's most indebted company.

Michael121

Saw this last night as well as Main Street Pensions Take Wall Street Gamble by Investing Borrowed Money - WSJ.

tebbins

maxsteam said:

I normally look at Chinese businesses and think, yes, it is a good business. I hope that the boss doesn't talk about politics or upset CCP in such a way that CCP steps in to educate the boss.

With Evergrande, I am actually hoping that CCP will step in and pick up the pieces otherwise I can see waves spreading around the world through the banking systems.

A bursting of the Chinese property bubble has been widely forecast. I hope that this is not the pin.

That's your first problem, your second is the share-class ownership problem, your third is the corruption, fraud & debt, I could go on.

Thrugelmir

All Chinese companies are accountable to the state first.  Shareholders second. Never been any different. Chinese capitalism is very different to that in the Western world. 

tebbins

Thrugelmir said:

All Chinese companies are accountable to the state first.  Shareholders second. Never been any different. Chinese capitalism is very different to that in the Western world. 

Local officials second, management's bank accounts third... I'm sure on occasion they spare a thought for the shareholders.

tranquility1

The world economy is an indebted house of cards.  It only needs a nudge to fall over.

Evergrande isn't the only case of this in China, I've read.

tranquility1

I have a good mind to sell my ETF and go into cash for the next few months.

tebbins

tranquility1 said:

The world economy is an indebted house of cards.  It only needs a nudge to fall over.

Evergrande isn't the only case of this in China, I've read.

Oh dear here we go again, batten down the hatches folks the world is ending!

tebbins

tranquility1 said:

I have a good mind to sell my ETF and go into cash for the next few months.

Great Reset 2 is only going to take a few months? What else can you foresee great prophet? Will the rotating restaurant at the top of BT tower re-open? Will Snickers go back to being Marathons? Will Burger King chicken nuggets really be 800 for $1?

https://youtu.be/6dOj3XAgpQE