Evergrande contagion has reached new york. 750 pts drop. Dont play2 arr. China world's no 2 economy taking a beating. Implications are far reaching. China markets are closed, only open wednesday n will plunge big time bcause evergrande unable to pay debt n will collapse next day on thursday.
Those who thinks that the eminent collapse of Evergrande is bigger than life and may trigger a World Financial Crisis will have a lot of sweating to do.
The ripple effects had already shaken world markets but the drop was not strongly felt. Dow dropping as much as 800 point before pulling back to a 614 (-1.78%) points drop, pretty much a regular correctional pull back, and not bigger than usual.
Ever seen what a meltdown of DJ looked like?
Evergrande total debt of 300 Billion, with which a portion of them are coming due. The News was out there the past 2 weeks and many Analyst had made adjustments and more taking shorts positions against Chinese economy.
Evergarde listed market price had plunged by 80%, so that's the truth stripped naked. They have issued 24 major Bonds and these holders are having sleepless nights.
It's now up to the Govt's decision to either, protect the homeonwers, buyers, suppliers or the lending Banks. Chinese Govt's opaque hands in their Banking sectors may need to play the crucial part in case of a bailout for the company.
Yes, it may cool the chinese economy again, recently having regulatory crackdowns on Gaming, Internet companies, education companies and some other industries.
Chinese Govt has since year 2011, been alternating between braking and accelerating the Housing industry to make home ownership high on priorities and now at 90% level.
It may take years to clear the mess at Evergrande with over 1,300 project in 280 cities, but expecting the Govt to give their decision to either let the company fail or step in to pacify the Banks and save the house buyers.
Meanwhile, back at Dnex, we are certain it would be business as usual and not raise any brows. Oil and Semicond chips are still the power houses for the future and high shortage is met with higher prices.
Evergrande fiasco is one of those preplanned move by the China Government through tweaking housing policies. Evergrande grew so large and profitable over the years, through taking high risk that they thought were going to benefit greatly in the coming property boom cycle, that was squashed by the government policies.. China government tweaking the lending policies recently to stamped the rising housing prices caught Evergrande square footed and the excessive debt it raised is breaking its back as profit did not materialize. 300 billion debt with substantial amount of it backed by assets is not going to be a big problem for China, but the effect is sinking in for those in America, whom, incidentally, with housing prices ballooned many folds over the last 2 years....in a seemingly "stagflationary" environment.
Since the Sub-Prime Toxic Financial fallout in 2008-2009, USA Feds had put in place many higher stringent Policies on Housing Industries. They don't want to see another devastating Crisis, and in such a short time.
More concerned could be the Australia property markets which had always been highly dependent on Mainland investments and developers.
This would be an internal chinese solution and 300 Billion is not much to the Govt. Plus, it's not a total burned out but recoverable assets, unlike the USA Housing Crisis.
Game is definitely not over for Dnex but very true for counters once promoted in this forum like sedania, dateprep tocean etc, and more so for Genetec . The game for our beloved counter will unfold very soon !!!
Largest country holder of USA Treasury Bills and Bonds...1) China (2) Japan.
It's been said that if China dumps the Bonds and TBills, it could bring Uncle Sam to his knees. But it doing so, the world Benchmark in greenback together with the wealth in dollars that China holds could be significantly downsized.
Also, kindly learn how the Corrupted Leaders, Money Launders, Frauds, Criminal are brought to Chinese Laws and if found GUILTY, penalties meted out.....Public execution with a bullet in the head. Go figure.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Sharkdoodoo
271 posts
Posted by Sharkdoodoo > 2021-09-20 15:14 | Report Abuse
sendiri talk sendiri siok, if you're power enough then boost the price, not talk cock here