Evergrande The Troubled Chinese Real Estate Developer has remitted the funds for a key interest payment that was due Sept. 23 — ahead of a 30-day grace period that ends Saturday, Chinese state media Securities Times said Friday.
As i’m sure you know evergrande missed a mentioned at the time, missing that payment of the bond gave evergrande a 30-day grace made sense for them to make the most of that last night it was announced that the company the bond trustee and so investors should receive evergrande’s shares are up almost 8% right the grace period would have expired at midnight would have
Resulted in a default – setting it also sends a good signal to international the company will prioritize local creditors evergrande are by no means out of the woods though. $13.6bn as of the end of june and total liabilities they have $36bn of borrowings and $91bn of are quite short on cash, and they can only evergrande scrapped their talks earlier this arm and additionally
Announced that real estate sales have fallen by 97% during the peak home-buying on thursday after they disclosed that they evergrande has been trying to sell a majority this sale fell through as government officials evergrande also failed to sell their hong as a bit of a side note, evergrande announced with an inquiry into its accounts from hong so, for now, this coupon
Payment buys the asset sales and it increases the likelihood the property leverage problem in china is on smaller bonds, and you can see that yields kaisa, another large developer, has a bond that bond is trading at 35 cents on the dollar right now. senior officials weighed in on the issue for blamed evergrande for its issues and said he added that any spillover to the
Financial system was “controllable”. of great interest globally as it could signal this matters both for china and for the rest between 2013 and 2018 china made up one third of global economic growth. of economic growth than any other economy has been driven by malinvestment in both property and infrastructure. there are a few answers to that question, is fueled
By excess leverage and malinvestment is simply running out of steam. to calm the property market, this was not the case with prior leaders. apartments in shenzhen cost around 25 years of average household income to buy. another reason that this might be happening strong growth this year mostly due to a bounceback from the terrible prior year. china’s ruling party
Convenes for the first the ground for a twice-a-decade party congress from a political point of view it might be before this important political event, but high risk to do that as eventually the chickens come home to roost. as i covered in my prior videos, chinese regulators to reduce the economy’s overreliance on debt implemented the “three red lines” ratio, its
Debt-to-equity ratio, and its cash-to-short-term-debt ratio. not only could they no longer borrow, but they were forced to deleverage. of the property developers were doing this at once. right now, evergrande is the firm struggling the three red lines on chinese property developers as the pain intensifies, you have to ask if the government specifically want to reduce
Affordability and there is no way of doing this without inflicting pain. xi has not gone easy on the tech and education growth rate going forward; they can go easier the three red lines; or they can increase i think they are unlikely to decide to accept increasing local government spending might local government revenues come from leasing land to property developers.
They can better manage the decline of the property sector. between now and 2060 46.6 trillion dollars that comes to 1.2 trillion dollars per year that leads to the question of whether this if you enjoyed this video you’ll probably finger mistakes in markets – available at this link. bye
Transcribed from video
Evergrande Makes Bond Payment! By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-10-22T183639+0000endTimestamp2021-10-22T184824+0000}
