Posted on 10/25/2024 11:30:15 AM PDT by davikkm
China is currently facing a staggering $800 billion in defaults in its non-standard debt market. Much of this debt is tied to Local Government Financing Vehicles (LGFVs), which issue fixed-income investments that aren’t publicly traded and are primarily used to fund infrastructure projects. Analysts estimate the size of this non-standard debt market to be massive, and recent data shows an alarming increase in defaults.
In just the first nine months of 2024, 60 non-standard debt products tied to LGFVs have either defaulted or flagged repayment risks—up 20% compared to the same period last year. This surge has set a record for defaults in this debt sector, revealing deep cracks in the foundation of China’s financial system and posing significant risks for the overall economy.
(Excerpt) Read more at citizenwatchreport.com ...
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Who is on the hook for these?
Great question—no clue how the Chinese financial system operates.
Their policy on repayment: Screw you round eye.
China’s shadow banking market is bigger than their legit one. They are toast. They can’t print their way out like the dipshits at the Fed think they can do.
Who is on the hook for these?
Got a mirror?
This is all internal. The Xhicoms are on the hook.
The Chinese don’t have a financial system ,LOL
Not us. Although it will have serious global repercussions. God willing Trump is there to navigate and stick a stake through the chicom heart. He would have already done it if they didn’t steal the election.
Wait ,Biden will borrow $800 Billion from the Chinese and bailout the Chinese
Gordon Chang published “The Coming Collapse of China” 23 years ago.
The ‘coming’ can be a long period of time, it seems.
China was an idiot for going after their billionaires
I read the the other day that the Chicoms have some 10 million mostly finished luxury homes that are ghost towns now that are separate from the older projects that went belly up. The animals are taking over. It’s even worse than the Evergreen mess from a couple years ago as bankers have pulled out and the (much fraud) financing is history.
SpyNavy
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
Local Chinese banks, managing local people’s money in yuan made these loans and took the equivalent of high yield municipal and state bonds to balance their books. When the issuing agencies do not have the funds to service or redeem the bonds, the local banks go broke and ordinary people will begin to suffer. As in the US to avoid political unrest, unemployment and a loss of confidence in the banks, the central bank of China will step in, further weakening the national currency, cause inflation and contracting real investment. Meanwhile Chinese with surplus funds, if they can’t invest abroad in countries like the US,Canada, Australia or the EU buy gold and silver, further stagnating the economy. Once you squander capital, its gone.It can only be regenerated by productive hard work or conquering someone else.China has invested in a huge military so in the minds of some of their twisted leaders, war is an option.
Keep China 1959 it’s good for all.
“ Not us. Although it will have serious global repercussions.”
Only good ones.
One, Xi is not in charge anymore.
Zhang Youxia is calling the shots.
We were in China in 2016. Both Changchun and Harbin had huge buildings empty. At night there you could only see a few with electric lights on.
Bkmk
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