Evergrande. Here's hoping CCP will step in.

edited 14 September at 1:44AM in Savings & Investments
48 replies 1.5K views
maxsteammaxsteam Forumite
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edited 14 September at 1:44AM in Savings & Investments
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.
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Replies

  • jimjamesjimjames Forumite
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    I'm surprised that it hasn't had more market impact so far
    Remember the saying: if it looks too good to be true it almost certainly is.
  • jamei305jamei305 Forumite
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    $300 billion debt - has to be the world's most indebted company.
  • tebbinstebbins Forumite
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    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.
  • edited 14 September at 1:16PM
    ThrugelmirThrugelmir Forumite
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    edited 14 September at 1:16PM
    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. 
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • tebbinstebbins Forumite
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    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.
  • tranquility1tranquility1 Forumite
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    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.
  • tranquility1tranquility1 Forumite
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    I have a good mind to sell my ETF and go into cash for the next few months.
  • tebbinstebbins Forumite
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    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?

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