China’s Evergrande Group — once the country’s second-largest property developer — filed for bankruptcy in New York on Thursday.
China’s real estate sector was long seen as a vital growth engine in the world’s second-largest economy and accounted for as much as 30% of the country’s GDP. But Evergrande’s 2021 default sent shockwaves through China’s property markets, damaging homeowners and the broader financial system in the country.
Curious to see if there is going to be a domino effect with their real estate companies.
Curious to see if there is going to be a domino effect with their real estate companies.
China Gardens, the largest real estate company, is toppling (article is from a week ago and those payments still haven’t been made) and at least one of China’s largest “Shadow Banks”, Zhongzhi Enterprise Group, is going with them.
The dominoes aren’t going to stop; Evergrande, Country Gardens, and Zhongzhi Enterprise Group are just the first visible ones.
surprising absolutely no one.
surprised it took this long, surprised the shock on the charts isn’t bigger around the world.
My best guess is that the almost two years of can kicking this conclusion was enough for most larger investors to reposition so the bag holders are now, once again, regular people.
Only difference being that it is a large amount of Chinese citizens getting fudged, rather than US or EU citizens.
So you’re complaining that “regular people” are too stupid to move out of their positions? What the hell kinda free market do you think this is?
They cannot move out of their position in China, because they paid in advance for an apartment they are not going to get. They are truly fucked over there. Evergrande is a pyramid scheme, using real estate.
After all the warnings on the Chinese real estate market in the last years, this should only hit those who were to dumb to handle investments in the first place. A rather Darwinist approach to markets.
So more of a Temporarilygrande, eh?
Oh fuck you that’s so much better. Edit: read in an Australian accent, and I’m not Australian.