Posted on 10/04/2021 9:22:27 PM PDT by blueplum
Chinese property developer Fantasia Holdings failed to repay a $206 million bond payment due Monday, said the company, just two weeks after it said it had no liquidity issues.
The missed payment adds to the already immense strain on China's real estate sector, which has been left exposed to the $305 billion credit crunch from property giant Evergrande, the most indebted company in the world.
Fantasia is worth $415 million, reported Reuters, a drop in the ocean compared to Evergrande's crisis. But its bond default contributes to fears that an imminent major collapse in China's property market could destabilize the whole Chinese economy....
...It took a senior note bond worth $500 million in 2016 that was due this year, said the company in a Monday exchange filing. But when the deadline arrived, it still had $206 million of the repayment left outstanding, it said....
(Excerpt) Read more at businessinsider.com ...
China is shortly going to be dangerous.
Pei-Ping.
Not to be too curious about it....but if one listed all of the Chinese mortgage/development companies, how many are near collapse?
“I tell you already. Check is in Mail. Don’t call again!”
Problem is that China may start war over Taiwan to distract from problems.
How long until the Dems propose a bill to bailout China? You know Fraud Joe would love 10% of that payoff.
China is a communist country above all. They build according to plans and official targets. When they were raking in the cash before Trump got into office they plowed their money into huge cities that people could not afford to live in. Standards are low and building codes were only enforced when bribes were not being offered. They call it tofu construction. They have built several cities with everything but people in them. Of course if you own apartments but don’t have renters eventually you will get foreclosed on. In the last couple of weeks they were demolishing a dozen partially completed buildings because they could not afford to finish them.
Truck with 20 rolls of 1cm diameter reinforcing wire arrives at "special factory"
Week later truck departs with 21 rolls of 1cm diameter reinforcing wire.
By some strange process, the truck and wire still weigh the same as before.
Ding ding ding, we have a winner.
I’d bet the farm a Chinese wag the dog is imminent.
look out Taiwan.
Please Explain. Exactly Why Do We Have a Shipping Crisis?
See my replies #6 & #7 in particular.
If they do, I think the allies in that area will crush them. Be a shame to see the 7 gorges damn suddenly burst. Bet nothings holding it together but paper mache…
These two guys spent many years in China. As a sideline, they did YouTube videos about life in China, traveling along on their motorcycles. Until they were expelled for revealing too much about what is going on.
Here’s something from three years ago as they visited a “ghost city” and looked at construction quality. I strongly recommend their channel. Lots of good stuff.
That’s scary! And to think, this video is from three years ago.
CCP Jets in Taiwan air space are a distraction from the calamities unfolding at home
On their channel, from 4 days ago, they cover Evergrande, Chinese society, corruption, and some other stuff
Why Evergrande Collapsed - Our Chinese Houses Crumbled
https://m.youtube.com/watch?v=lKbLB_T-IjY
No one knows
For research, search YouTube for China real estate trouble
there are many and there is no solid consensus among the video presenters
I think you’re right. I think their economy is about to undergo a major correction. Investors will be bailed out according to how important they are to the Party:
Senior party members — first priority
Junior party — second
Regular Chinese— distant third
Americans stupid enough to put money into China— you lose, fools.
...So the ruling elite simply deem the company to have an extra $200MM yuan, and they pay off the debt. Heads may roll at the top of the company, but I don’t see China actually letting some of their companies, especially ones that big, fail. And no one’s gonna care if the money is created out of thin air, and they just ‘found’ it somewhere in the back of the books.
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