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Today I have an update on the bankruptcy proceedings of the EverGrande Group, the second largest real estate developer in the PRC. As I noted last month EverGrande had filed for bankruptcy protection in the US. If your 401K or stock personal stock portfolio has any exposure to EverGrande that money is effectively gone for good.
Currently EverGrande has debts totaling 2.437 Trillion Yuan or ~$330 Billion US. It currently has 1.62 million housing units throughout the PRC in a rotten-tail (unfinished) state. This means that 5-6 million people are waiting, and making payments on, housing that they may never see.
During 2021 & 2022 EverGrande had an operating loss of ~$111 Billion US. The current debt of EverGrande is roughly comparable to the national debt of Russia AND Argentina. Of the outstanding creditors the only ones who will be protected are the national banks. It can't afford to let EverGrande drag them down as it would drag down the CCP. The homeowners, commercial vendors, and foreign investors are SOL.
WWG1WGA
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)