China"s property bubble may be about to burst

**S Landreth** · 04-10-2021, 10:35 AM

China Evergrande's Shares Are Halted as Doubts Swirl - The New York Times

The property giant owes billions of dollars in debt, and investors worry that any collapse could hit broader markets.

Shares of China Evergrande were halted on Hong Kong’s stock exchange on Monday as doubts swirled over whether the struggling property giant would be able to meet its immense financial obligations.

No reason was given for the halt, which was disclosed in a filing with the exchange. The halt also affected some of the company’s listed units.

The real estate developer — once China’s most prolific — has been under close watch by foreign investors and local regulators after it missed two important interest payments on U.S. dollar bonds. The missed payments may not necessarily trigger a default because they each have a 30-day grace period before the missing payment would be considered a default.

Evergrande is under pressure from contractors and employees who are owed more than $300 billion in unpaid bills, as well as home buyers who are waiting on as many as 1.6 million unfinished apartments. In recent days, Wall Street banks and financial sleuths have been uncovering other liabilities that Evergrande may have in the form of guarantees that may add to its towering debt pile.

The company has not addressed its missed bond payments but said last week that it had sold a stake in a Chinese bank for $1.5 billion, which would go to pay some of its debts. Investors who are owed payments said they had not heard anything from the company, either.

Many of them have become increasingly pessimistic of a scenario where Beijing would step in to save Evergrande. It has hired restructuring experts to “explore all feasible options” for its future.

“I don’t expect payments will be made because the group has to be restructured,” said Michel Löwy, chief executive of SC Lowy, an investment firm that has a position in Evergrande bonds.

“I think it’s going to be a major hit for bondholders,” said Mr. Löwy, who said he was much more negative about the situation as more information has emerged about the quality of the land that Evergrande owns but has yet to develop. A restructuring of the entire sprawling real estate empire “would be very difficult to monetize,” he said.

**david44** · 04-10-2021, 11:11 AM

Originally Posted by S Landreth

“I think it’s going to be a major hit for bondholders,” said Mr. Löwy, who said he was much more negative about the situation as more information has emerged about the quality of the land that Evergrande owns but has yet to develop. A restructuring of the entire sprawling real estate empire “would be very difficult to monetize,” he said.

Indeed Mr Löwy I imagine has a clear grasp of teh contradistinction twixt collatarel ad security which many do not.
This bag of assorted excrement may yet be contained within PRC but at what cost, paying external overseas investors over locals won't wash well with anew breed of Chinese who've acquired assets that are about to have a not so much a haircut as Number 2 or even a full Brazilian.

For those who have more interesting careers than HSBC Westbay Doha may I simply say a

KEY FACTOR IS CONFIDENCE ONCE A GF OR CONDOM SPLIT IT MAY BE HARD TO RECOVER

For those interested in the tawdry realm of restructuring receivership, refinancng etc a few links

Collateral - Definition, Types, Collateral vs. Security

Debt Restructuring - Definition, Reason, How to Achieve

Guidance on liquidity and funding in resolution | Single Resolution Board

An EU perspective a very long read
https://www.srb.europa.eu/system/fil...on_final_0.pdf

Similar with EU regs
https://eur-lex.europa.eu/legal-cont...059&from=EN%20

PRC has more leeway and no voters to worry about nor pesky Pissyleaks, whistleblowers etc

We'll see how this plays out haircuts for all is my inkling , whether contagion sufficient to rock HSBC, Standard Chartered and others exposed in E Asia. If it really hits investors confidence in Honkers, Singers, Japan, Taiwan, S Korea there is no backstop IMHO.

I imagine Yellen and teh Fed must be revelling in a certain Schadenfreude ....for now.
Cryptoed out my sole investment in China will be delicious platefulls of Yum Cha , Dim Sum for tiffin

**Shutree** · 04-10-2021, 01:38 PM

China"s property bubble may be about to burst-evergrande-png

**harrybarracuda** · 04-10-2021, 02:06 PM

Hong Kong-based property developer Hopson Development is planning to take over 51 percent in China Evergrande Group's property management unit Evergrande Property Services Group with over HK$40 billion ($5.14 billion), financial news agency cls.cn said in an exclusive report on Monday, citing sources.
Trading in shares of the involved parties was halted at 9 a.m. on Monday, according to notices by the Stock Exchange of Hong Kong (SEHK).
The sources said the deal won special approval from the SEHK for the transfer of the controlling rights, as Evergrande Property Services Group has been listed in Hong Kong for less than a year.
The listing rules of the SEHK require that the controlling shareholder shall not dispose of the company's shares in any way within six months from the trading day, and shall not lose controlling rights of the company within another six months.
A filing by Hopson said the trading halt was "pending the release of announcement(s) in relation to a major transaction" related to its agreement to acquire the shares of a "target" company.

Report: Hopson plans to take 51% stake in Evergrande Property Services - CGTN

China"s property bubble may be about to burst-92d523ac33994998999fd7fd2030b8cb-png

**panama hat** · 04-10-2021, 04:19 PM

Originally Posted by OhOh

A whisper on a media outlet

Chinese whispers, perhaps OhWoe?

Originally Posted by S Landreth

China Evergrande's Shares Are Halted as Doubts Swirl - The New York Times

The property giant owes billions of dollars in debt, and investors worry that any collapse could hit broader markets.

Shares of China Evergrande were halted on Hong Kong’s stock exchange on Monday as doubts swirled over whether the struggling property giant would be able to meet its immense financial obligations.

**david44** · 04-10-2021, 06:10 PM

Originally Posted by panama hat

Chinese whispers, perhaps OhWoe?

Fear not they have consulted a Thai Oracle with a double Chatterkom

Usual fix , nick anything not tied down do a runner to Laos.

Container loads of air freshener required when it fully hits the fan, Golden Days indeed.

**Backspin** · 05-10-2021, 08:28 AM

Its not about whether some Evergrande bond or shareholders get shafted. Its about whether this results in a real global crisis or not. Seems not. We probably won't have a crisis like 2008 for a couple decades or more.

**panama hat** · 05-10-2021, 08:31 AM

Originally Posted by Backspin

Its not about whether some Evergrande bond or shareholders get shafted.

It is

Originally Posted by Backspin

Its about whether this results in a real global crisis or not.

It's not

You're back with your incisive comments . . . umm . . . yay!

The collapse of Evergrande has a massive impact in China as well as outside of the country - how many are affected . . .

**david44** · 05-10-2021, 08:54 AM

Originally Posted by panama hat

massive impact

indeed bubbling pricks and pricked bubbles forecast.

I hope the interwebs ,ping, latexy,titspergigatight and bored rate hang on long enuff

O course it may all be a storm in markets far away, and massive Chinese cyber warfare won't matter to those who have no online banking, never use a mobile phone with any chinese apps parts or software few will notice if Whatsapp fppaed off,incontinet for lack of updates , Barrow buried, Instagram Ebay, Twitter , Face book or if their favorite forum is unobtainable and unable to check Ant's antics horly they may all be be driven to wa.....................................

**harrybarracuda** · 05-10-2021, 12:29 PM

BEIJING: Another Chinese homebuilder has hit financial trouble after it missed payments on debt obligations, adding to worries over the country's property sector as embattled giant China Evergrande teeters on the brink of collapse.
Fears of contagion through the Chinese economy have grown as Evergrande, the most indebted of the country's private homebuilders, struggles with more than $300 billion in liabilities and heads towards a massive restructuring.
Fantasia Holdings failed to repay a $205.7 million note Monday, the Shenzhen-based company said in a statement.
This came as property management firm Country Garden Services Holdings added that a unit of Fantasia had missed repayment on a 700 million yuan ($108 million) loan, saying it was likely Fantasia would default.
The news comes as investors await news from Evergrande after it suspended trading of its shares Monday pending an announcement on a "major transaction", with reports saing Hong Kong real estate firm Hopson Development Holdings planned to buy a 51 percent stake in its property services arm.
While Fantasia is a smaller player in the market than Evergrande, its struggles highlight investor concerns over companies' financial disclosures.
Fitch Ratings downgraded Fantasia to "CCC-" on Monday, a move that points to default as a possibility.
The ratings agency added in a statement that although media reports said Fantasia missed an earlier payment to bondholders, the bond "does not appear to have been disclosed in the company's financial reports".
"We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected.
"Furthermore, this incident casts doubt on the transparency of the company's financial disclosures," Fitch added.
Separately, S&P Global Ratings has downgraded another Chinese property firm -- Sinic Holdings -- saying its "debt-servicing ability has almost been depleted".
Sinic has been unable to service interest repayments, which could result in "accelerating repayments on Sinic's other debt obligations", S&P said on Monday.
Fitch downgraded Sinic from "CCC" to "C" on Tuesday, reflecting its view that "a default-like process has begun" for the company.
The boss of Shanghai-based Sinic hit the headlines last month when he lost more than a billion dollars in a market meltdown linked to fears about Evergrande.
Zhang Yuanlin saw his net worth drop from $1.3 billion to $250.7 million on September 20, according to Forbes, when his firm was forced to halt trading in Hong Kong following an 87 percent slump in its share price.
China's real-estate sector has been under tightened scrutiny in recent months, with regulators announcing caps for three different debt ratios in a scheme dubbed "three red lines" last year.
Beijing has stayed silent on the travails of Evergrande, but state media has trailed various responses in a nod to the mood towards a private company that grew on a debt binge in the boom years of Chinese real estate.

Another Chinese developer fails to make debt payments

**harrybarracuda** · 05-10-2021, 12:32 PM

It's a good job Mr. Shithole has control of the media or the poor chinkies who might lose their life savings from this cataclysmic lack of oversight might find out what a comically inept leader he really is.

**panama hat** · 05-10-2021, 01:05 PM

Originally Posted by harrybarracuda

It's a good job Mr. Shithole has control of the media or the poor chinkies who might lose their life savings from this cataclysmic lack of oversight might find out what a comically inept leader he really is.

Luckily, according to OhWoe, Chinese have the right to freely express themselves

**david44** · 05-10-2021, 01:07 PM

Good catch Harold

Fantasia aptly named ! Taiwan laughs PRC Disney
Looks like the sludge spreading

Luckily here we have leaders with real Rolex Watchmen and a Mickey mouse government, it seems China has a Mickey Mouse regime and Bollox watchmen.

China"s property bubble may be about to burst-download-jpg

China"s property bubble may be about to burst-download-jpg

**david44** · 05-10-2021, 01:15 PM

Originally Posted by panama hat

Chinese have the right to freely express themselves

in private, overseas or in the next life.

**David48atTD** · 05-10-2021, 02:44 PM

Chinese developer misses bond payment as stress spreads beyond Evergrande crisis

Key Points

Ratings agencies have downgraded Chinese developers Fantasia Holdings and Sinic Holdings over risks from their strained cash flow situations.
Fantasia Holdings did not repay a bond that matured on Monday, it said in a filing to the Hong Kong exchange on Monday night.
The real estate sector in China accounts for as much as 15% of the Asian giant’s GDP, according to analyst estimates.

China property default risk for Fantasia, Sinic amid Evergrande crisis

**OhOh** · 05-10-2021, 05:49 PM

Originally Posted by david44

China has a Mickey Mouse regime and Bollox watchmen.

Only China eh?

Uncle Xi told them 2 years ago, "houses are for living in, not speculation".

If commercial developers, their investors or speculators can't read, who is to blame for any losses?

**harrybarracuda** · 05-10-2021, 08:49 PM

Originally Posted by OhOh

Only China eh?

Uncle Xi told them 2 years ago, "houses are for living in, not speculation".

If commercial developers, their investors or speculators can't read, who is to blame for any losses?

You're a dopey fucker sometimes.

This is Chinkystan's ENRON.

**panama hat** · 06-10-2021, 03:07 AM

Originally Posted by david44

China has a Mickey Mouse regime and Bollox watchmen.

Originally Posted by OhOh

Only China eh?

Yes, you utter moron. That is exactly what was written. ONLY! Do you see the word ONLY in that sentence? Well done . . .

Originally Posted by harrybarracuda

You're a dopey fucker sometimes.

Change that to 'all the time'.

**OhOh** · 06-10-2021, 10:53 PM

"Well, sorry, bondholders, you made loans to a company that was way over-leveraged.

Already, the American bond rating companies have reduced their bond rating to junk. You knew what you were buying.

If you continued to hold bonds that Fitch and other bond raters like Moody’s all said were junk, and you lose your money?

Well, you took the risk, you got a high rate of interest, now you’re paying the price.”

That’s how "free" markets work."

Anon.

**harrybarracuda** · 06-10-2021, 11:36 PM

Starting to sound more like some dodgy chinky market manipulation.

Major shareholders and senior executives of several Chinese banks have been on a buying spree, picking up the shares of their own organisations on the cheap, after China Evergrande Group's debt crisis rattled capital markets and drove down valuations.
At least six listed commercial lenders, including Ping An Bank and Bank of Shanghai have announced plans to buy back their own stocks this month, when financial markets were roiled by concerns of exposure to Evergrande.
China Zheshang Bank, a nationwide lender based in the Zhejiang provincial capital of Hangzhou, was the latest to join the fray, with a statement on Monday announcing that its vice-president Liu Long had spent 1 million yuan (US$154,952) to buy back 283,300 of the bank's shares from the Hong Kong stock market. Jiangsu Expressway Company, the seventh-largest shareholder of Shanghai-listed Bank of Jiangsu, will raise its stake by 48 million shares, according to a September 24 statement by the lender.

Chinese bankers swoop in on own shares on the cheap as Evergrande's debt crisis rattles market, drives valuations lower

**panama hat** · 07-10-2021, 03:04 AM

“Everything for me and Evergrande is given by the party, the state and society,”

Quote from Hu Ka Yan, founder of Evegrande . . . invested in a football team to please Xi.

What a rotten society

**OhOh** · 07-10-2021, 11:42 AM

A snip from an interview:

Secretary Antony J. Blinken with Francine Lacqua of Bloomberg

Interview

Antony J. Blinken, Secretary of State

Organisation for Economic Co-operation and Development

Paris, France

October 6, 2021

"QUESTION:

Secretary, there’s a lot of focus, of course, on how the China – the Chinese authorities are dealing with Evergrande. What does it tell you about Chinese stewardship?

SECRETARY BLINKEN:

Well, look, China has to make sovereign economic decisions for itself. But we also know that what China does economically is going to have profound ramifications, profound effects on literally the entire world because all of our economies are so intertwined. So certainly when it comes to something that could have a major impact on the Chinese economy, we look to China to act with – to act responsibly and to deal effectively with any challenges.

QUESTION: Secretary, thank you so much for your time today.

SECRETARY BLINKEN: Good to be with you. Thank you."

Secretary Antony J. Blinken with Francine Lacqua of Bloomberg - United States Department of State

The NaGastani government appears to suggest that the government of China interfere with the free market operations, of commercial Chinese companies.

It's accepted behaviour, "to deal effectively" it seems, by the NaGastani government.

As illustrated currently by its own "responsible", fragile, FED manipulated/driven:

Bankrupt Ringling Brothers and Barnum and Bailey circus.

The global financial catastrophe has been formally identified.

It's China

**david44** · 07-10-2021, 12:06 PM

Originally Posted by harrybarracuda

Zhejiang provincial capital of Hangzhou

A once beautiful city of poets , monasteries and tea houses besmirched by modernity.

Amusingly the west Lake around which teh city cliings is known as Wu Si Wu

and the local Ale Xi Hu or Si Hoo beer is a pleasant Carlberg style piss, the joke locally it is made from Lake water.

I endured life there thanks to a very flexible Italian girl who had the most intrigueing manouvres the very qualities Chinese restructuring funds require forthwith.

Google Image Result

**Shutree** · 10-10-2021, 12:52 PM

Originally Posted by david44

A once beautiful city of poets , monasteries and tea houses besmirched by modernity.

I visited in the off season when it was still very busy. I have seen pictures of the crowds at autumn when it seems there is no empty space to stand. Living there was it possible to get out at dawn and see some of the old bits?

My visit was some time in the months before that arch fell down and killed a couple of people. An analogy for Evergrande, perhaps.

China"s property bubble may be about to burst-hangzhou-jpg

(Internet pic.)

**Backspin** · 12-10-2021, 09:07 AM

ZeroHedge is totally anti China now and is reporting on this story. Here's todays musings on it.

The US bond market may be closed, but it was fully open in China, and locals took advantage of this fact to do one thing: sell.
In the aftermath of our viral post ""Catastrophic" Property Sales Mean China's Worst Case Scenario Is Now In Play", China property firms bonds were hit with another wrecking ball on Monday as Evergrande was set to miss its third round of (offshore) bond payments in as many weeks and rival Modern Land became the latest scrambling to delay deadlines.

Having already suffered the fastest drop on record, Chinese junk bond markets - where property developer issuers dominate - were routed once again as fears about fast-spreading contagion in the $5 trillion sector, which drives a sizable chunk of the Chinese economy, continued to savage sentiment. Meanwhile, China Evergrande Group's offshore bondholders still had not received interest payment by a Monday deadline Asia time, Reuters reported citing sources.

But while Evergrande's default is now just semantics, and one week after Fantasia shocked bondholders with a surprise announcement it too would stuff creditors just weeks after it had said its liquidity was fine, which sent its bond plunging from par to 74 cents in seconds...

"It'''s A Disastrous Day" - All Hell Breaks Loose In China'''s Bond Markets | ZeroHedge

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