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Evergrande Is Collapsing – Will Not Make Its Massive Debt Payments

That is actually scary.  These are massive numbers which will have an effect on your entire world.

Hong Kong actual property holding firm in China, Evergrande, is in dire straights.  This firm has $300 billion in debt and it’s unable to make its funds.  [After living in Hong Kong the past decade, my hunch is that Evergrande is not the only company unable to make debt payments on real estate in China.]

EXCLUSIVE: The Starting of China’s Financial Collapse? Largest Issuer of China’s Business Paper, Evergrande, Is Dealing with Chapter, Whole World Financial system Probably Impacted

A few days in the past we warned that Evergrande is getting ready for chapter.

Hong Kong Behemoth in China Actual Property Readying for Chapter – Is This the Starting of a Massive China Actual Property Crash?

The issue is Evergrande is 5 occasions the scale of Lehman Brothers, made well-known within the 2008 crash within the US.  On September 7, Zerohedge shared:

With algos busy chasing upward momentum in futures and world shares, the largest – if largely ignored story – stay the continued collapse of “China’s Lehman“, the $300+ billion China Evergrande, the place following our earlier stories (see beneath) {that a} financial institution run  emerged amongst collectors of the largest and most indebted Chinese language developer as its bonds had been now not eligible collateral within the repo market after a scores downgrade, on Monday the rout went from unhealthy to catastrophic as numerous Evergrande bonds crashed amid a liquidation frenzy, prompting China’s inventory exchanges to halt commerce.

The Shanghai Inventory Change mentioned in a press release that it had briefly suspended buying and selling in China Evergrande Group’s 6.98% July 2022 company bond following “abnormal fluctuations.” The change had additionally suspended buying and selling within the bond on Friday.  Tether industrial paper might be Chinese language and it is among the largest industrial paper merchants in existance.


[Personal comment – there are numerous billionaires in Hong Kong and many, if not all, are in Chinese real estate.  They may have been encouraged to do so.  If these companies have problems similar to Evergrande, this could be a very big problem.]

This actually may make 2008 within the US seem like nothing.  Maintain tight.


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