‘China’s Lehman Brothers moment’: Evergrande crisis rattles economy

[letsrock]

I really doubt it is that easy for competitors to integrate these projects in to their businesses. they may have different systems, different methods etc.

 

[Falconless]

Did you not say they cannot go public ? its already a public company in HK - their share prices tanked. what will they achieve by going public with such abysmal share prices ?

China Property Fear Spreads Beyond Evergrande, Roiling Markets

Growing investor angst about China’s real estate crackdown rippled through markets on Monday, adding pressure on Xi Jinping’s government to prevent financial contagion from destabilizing the world’s second-largest economy.

www.bloomberg.com

 

[letsrock]

Thr Evergrande crisis is faked and an attempts to rob the states of monies. The greedy capitalists thought they can play the state out. Not too long ago, assets are transferred out from Evergrande while crisis are impending. Next the senior management got a huge bonus payout and over the years, lots of monies are being made by the managers family, relatives and friends.

While Evergrande has liquidity problem, she is still hold scandalous amount of non liquid asset, for example large land banks, malls, properties, and on top of that 35% of Shengjing Bank, which is among the bigger bank in China.

The people who suffered the loses can recover everything after Evergrande sells these asset, and managers return all these profit. And I bet Evergrande will still be cash positive after pay her debtors.

These capitalist fake croc tears. They loss some monies due to wrong bet and want to get richer from crisis by asking government monies.

If you are right. People can buy evergrande stock now for peanuts, flip and get rich.

 

[Falconless]

Knowing the number of retail investors in this firm I really hope the Chinese government bails them out to protect the people.

If you are right. People can buy evergrande stock now for peanuts, flip and get rich.

2.2 HKD a share
0.28 USD

 

[MH.Yang]

Did you not say they cannot go public ? its already a public company in HK - their share prices tanked. what will they achieve by going public with such abysmal share prices ?

Listing in Hong Kong can't save Evergrande. There can't raise enough cash flow. Evergrande needs to be listed on China's A shares.

 

[Falconless]

Listing in Hong Kong can't save Evergrande. There can't raise enough cash flow. Evergrande needs to be listed on China's A shares.

But isn’t Hong Kong china’s biggest capital market?

 

[MH.Yang]

But isn’t Hong Kong china’s biggest capital market?

No, the biggest one is the Shanghai stock market, followed by the Shenzhen stock market. Hong Kong is third.

 

[Falconless]

No, the biggest one is the Shanghai stock market, followed by the Shenzhen stock market. Hong Kong is third.

So Hong Kong is only biggest for foreign revenue?

 

[MH.Yang]

Knowing the number of retail investors in this firm I really hope the Chinese government bails them out to protect the people.

2.2 HKD a share
0.28 USD

The Chinese govt will not save investors. On the contrary, the Chinese govt has always been unfriendly to investors.
However, the Chinese govt will ensure that Evergrande's house sales contract will be implemented and the interests of people who buy houses from Evergrande will not be damaged.

So Hong Kong is only biggest for foreign revenue?

The biggest advantage of Hong Kong's stock market is that it is easiest to be listed and can get funds from foreign investors. Shanghai and Shenzhen have higher dividends, stable CNY value and easier access to a large amount of domestic capital.

 

[Falconless]

However, the Chinese govt will ensure that Evergrande's house sales contract will be implemented and the interests of people who buy houses from Evergrande will not be damaged.

One way to do that would be to nationalise the assets of the company, leaving the debt with the investors but the consumers get protected.

 

[Song Hong]

One way to do that would be to nationalise the assets of the company, leaving the debt with the investors but the consumers get protected.

I do not see why Evergrande need to nationalized given she still have plenty of asset on the books (more than enough to pay off liabilities), and even more if we account into the asset transferred to other vehicles or individuals.

 

[MH.Yang]

One way to do that would be to nationalise the assets of the company, leaving the debt with the investors but the consumers get protected.

Poly Group, one of the three largest real estate companies in China, is a state-owned enterprise, and Greenland Group, the fifth largest China real estate developer, is also a state-owned enterprise. They are waiting for Evergrande to die.

 

[Beast]

Evergrande invest in EV is the biggest catalyst for their debt and crisis. When China has EV power house like BYD, Li auto, Xpeng and Nio.

Some idiot still want to try their luck and get burn by going into a very saturated market.

 

[letsrock]

Evergrande invest in EV is the biggest catalyst for their debt and crisis. When China has EV power house like BYD, Li auto, Xpeng and Nio.

Some idiot still want to try their luck and get burn by going into a very saturated market.

So its there investment in manufacturing that failed them. is this not what CPC is supposed to encourage - invest in manufacturing ?

 

[艹艹艹]

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