Evergrand default

[TASFarms]

Evergrand defaults today. Heard a rumour about Canada pension plan kicking in millions 6 weeks ago when they were have trouble. Get the popcorn out.
How much is China going to spank Canada with their human rights protest

[errolanderson]

China economy is like watching a slow-moving train crash. It will take years for this economy to recover.

Evergrande default is just part of a the entire Chinese developer community in serious financial trouble.

This will impact oil prices (IMO). China economic fallout could crush global oil prices, but no worries JP Morgan stated again this week that oil prices are heading to $125 per barrel. China who? according to U.S. banks.

[ajl]

Guess we will be finding out which canuckistani pension funds invested heavily in china in order to make communism look good in the near future. I suspect most of them. canuckistani are one of the world's stupidest people groups. Fortunately this household has only very small pensions owed to it.

[AlbertaFarmer5]

China economy is like watching a slow-moving train crash. It will take years for this economy to recover.

Errol, normally I think you are too pessimistic, but in this case, you are overly optimistic.

China's economy will never recover. Peak China is already behind us.

[WiltonRanch]

Errol, normally I think you are too pessimistic, but in this case, you are overly optimistic.

China's economy will never recover. Peak China is already behind us.

Yes and their gregarious nature is not serving them well neither. I kinda thought their OBOR would be a step stone to superpower but like the cartoon from the past of the British guy with one foot in NA and the other in the UK with their adversaries in a boat hitting their nuts, they have their challenges. When the Soviet Union collapsed the guys running it didn’t really believe it would happen but from the outside we weren’t surprised. Much as you’d think the leadership of these totalitarian states would be paranoid and aware of what’s going on around them and the world, there must be some ignorance superiority complex or cognitive dissonance at play. Judging by where and how much money they have thrown at their OBOR initiative or ghost cities at home it’s more of a pr play at home than an exercise in empire building. Now the iou’ on IOU’s can’t get another iou.

[foragefarmer]

First thing to be done to truly humiliate their Commie pride is boycott the Winter Olympics.

The NHL has to commit by Jan 10/2022, so who knows.

If they don't release the Chinese tennis player all Western countries should band together and stay home.

I know Australia would be on side with this their on China's shit list already.

Would it hurt Canadian Ag it could, but if all Western countries did it, they could be concern about food supply.

[TASFarms]

First thing to be done to truly humiliate their Commie pride is boycott the Winter Olympics.

The NHL has to commit by Jan 10/2022, so who knows.

If they don't release the Chinese tennis player all Western countries should band together and stay home.

I know Australia would be on side with this their on China's shit list already.

Would it hurt Canadian Ag it could, but if all Western countries did it, they could be concern about food supply.

China will buy from someone else. It might have to change hands a couple times.

[errolanderson]

CNN release this morning: Evergrande has defaulted on its debt. Now Beijing is intervening to prevent a disorderly collapse of the indebted real estate group that could wreak havoc on the world's second biggest economy.

Fitch Ratings on Thursday declared that the embattled property developer has entered "restricted default," reflecting the company's inability to pay overdue interest earlier this week on two dollar bonds. The payments were due a month ago, and grace periods lapsed Monday.

Evergrande's apparent failure to pay that interest has revived fears about the future of the company, which is reeling under more than $300 billion of total liabilities. Evergrande is massive — it has about 200,000 employees, raked in more than $110 billion in sales last year, and owns more than 1,300 developments in more than 280 cities, according to the company.

Analysts have long been concerned that a collapse could trigger wider risks for China's property market, hurting homeowners and the broader financial system. Real estate and related industries account for as much as 30% of GDP.

[errolanderson]

This is an update on Evergrande default . . . comments from New York. Contagion appears spreading into the western banking world heading into new year . . . . Will it impact our markets?


If you're buying the Evergrande dip you may be dipping into trouble. President Xi is letting the air out of the bubble, something other nations know they need to do but are too scared or are unsure how to begin. It is simply too risky today to be invested in China, let the EM ETF's sink a little lower before putting your toe in the water...~r

KEY POINTS

Chinese developers face $19.8 billion in maturing offshore, U.S.-dollar denominated bonds in the first quarter, and $18.5 billion in the second, estimates Nomura analysts Ting Lu and Jing Wang.

That first-quarter amount is nearly double the $10.2 billion in maturities of the fourth quarter, the analysts said in a note Tuesday.

The Nomura analysts pointed out another looming repayment deadline for Chinese real estate developers is deferred wages for construction workers, which are due before the Lunar New Year, which kicks off on Jan. 31.

[errolanderson]

China real estate appears poised for collapse . . . market factor to watch.

[Old Cowzilla]

Good thing Canada has lots of factories on stand by to ramp up for China collapse ***********

[TASFarms]

China real estate appears poised for collapse . . . market factor to watch.

Is that going to spill into Canadian real estate?

[AlbertaFarmer5]

Is that going to spill into Canadian real estate?

Yes, but it could go either way. Canadian real estate has been the go to investment for those in China trying to get their money out of the country while the getting is good. That is why price has been irrelevant, faced with the option of losing it all in China ( either through government interventions, or outright collapse, vs. buying overvalued real estate in Vancouver and leaving it empty, they choose the latter.

Could turn into a tidal wave of money trying to escape, or it could dry up if the government controls are tightened effectively.

[bucket]

Even if the chinese buying stops and houses go down in value , the chinese that got their money out of China have cleaned their money. And probably got a few members of their family Canadian citizenship.

Big win for them.

[WiltonRanch]

So where does this put the Chinese ambitions of dominating the China sea and bringing their wayward children Taiwan back into the fold?