Replies

A "Broken China" ping.

If you want on or off the ping list send me a FReepMail.

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)

Every time you post the ‘broken china’ ping and pic, I think of this...

The Duel

Eugene Field
1850 – 1895

The gingham dog and the calico cat
Side by side on the table sat;
‘T was half-past twelve, and (what do you think!)
Nor one nor t’ other had slept a wink!
The old Dutch clock and the Chinese plate
Appeared to know as sure as fate
There was going to be a terrible spat.
(I was n’t there; I simply state
What was told to me by the Chinese plate!)

The gingham dog went “Bow-wow-wow!”
And the calico cat replied “Mee-ow!”
The air was littered, an hour or so,
With bits of gingham and calico,
While the old Dutch clock in the chimney-place
Up with its hands before its face,
For it always dreaded a family row!
(Now mind: I’m only telling you
What the old Dutch clock declares is true!)

The Chinese plate looked very blue,
And wailed, “Oh, dear! what shall we do!”
But the gingham dog and the calico cat
Wallowed this way and tumbled that,
Employing every tooth and claw
In the awfullest way you ever saw—
And, oh! how the gingham and calico flew!
(Don’t fancy I exaggerate—
I got my news from the Chinese plate!)

Next morning, where the two had sat
They found no trace of dog or cat;
And some folks think unto this day
That burglars stole that pair away!
But the truth about the cat and pup
Is this: they ate each other up!
Now what do you really think of that!
(The old Dutch clock it told me so,
And that is how I came to know.)

L.P. Appreciate your posts, as always!

Then there is Country Garden China's largest Property Developer. (Did you already discuss this?)

China's Country Garden dodges another default in relief for property sector

"Country Garden also offered on Tuesday to extend repayment of eight onshore bonds worth 10.8 billion yuan ($1.48 billion) by three years, according to people with knowledge of the matter and documents seen by Reuters.

Those bonds, issued by Country Garden and a unit, were set to mature and be puttable - an option given to bondholders to sell the notes back to the borrower at a fixed date - in 2023 and 2024, showed the documents sent to onshore creditors....