- cross-posted to:
- world@lemmy.world
- worldnews@lemmy.ml
- cross-posted to:
- world@lemmy.world
- worldnews@lemmy.ml
China’s Evergrande Group — once the country’s second-largest property developer — filed for bankruptcy in New York on Thursday.
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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.
damaging homeowners and the broader financial system in the country.
Or, showing that current homeowners overpaid, opening the door to new homeowners and allowing the broader financial system to have losses we all knew were possible.
Curious to see if there is going to be a domino effect with their real estate companies.
Its fucked, no way around it. Property bubble has already exploded with a whimper, thanks to CCP censorship. Chinese households are now extremely wary of trusting their money to others and aren’t gonna be buying homes until the next (unsustainably small) generation.
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?
I mean… gestures towards the surroundings We’ve got a pretty large pile of “Oh shit, we’re fucked” stacked up here already. I guess add it to the pile?
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.
Assuming Chinese bankruptcy is similar to US style in generalities, I wonder if this is just a restructuring that will convert debt to equity and otherwise continue similarly, or if the org is so deep in that they’re getting sold off for parts.
surprising absolutely no one.
TLDR Global News explained this event about 1 year ago including some predicted possibilities. I got some idea on what’s happening even though I don’t really do economics.
DRS GME to stop global financial fraud
