Evergrande update
Discussion
Similar to the thread currently running in NP+E, but under current rules I will not be allowed to post there until I am well into my 90s.
Big picture - chinese population 1 billion. Number of properties - 2 billion. Sold off plan, not yet built - 1 billion. However, buyers are paying mortgages on these properties.
Evergrande, a big player, went bankrupt 2 years ago. It has been kept afloat till now by the government through backroom deals; it has taken them that long to prepare for the fallout.
CEO was arrested friday, as different from under police surveillance. He has pissed off Xi by two recent actions:
Evergrande US assets placed into chapter 11 bankruptcy. 90% of the creditors are chinese so these are placed beyond their control.
CEO has just obtained a technical divorce (cannot remember the exact term), not uncommon amongst the chinese seriously rich. Company owners have tight restrictions on disposal of assets, but ex-wives can make substantial claims.
Info obtained from various websites that comment on china, some more reliable than others.
Big picture - chinese population 1 billion. Number of properties - 2 billion. Sold off plan, not yet built - 1 billion. However, buyers are paying mortgages on these properties.
Evergrande, a big player, went bankrupt 2 years ago. It has been kept afloat till now by the government through backroom deals; it has taken them that long to prepare for the fallout.
CEO was arrested friday, as different from under police surveillance. He has pissed off Xi by two recent actions:
Evergrande US assets placed into chapter 11 bankruptcy. 90% of the creditors are chinese so these are placed beyond their control.
CEO has just obtained a technical divorce (cannot remember the exact term), not uncommon amongst the chinese seriously rich. Company owners have tight restrictions on disposal of assets, but ex-wives can make substantial claims.
Info obtained from various websites that comment on china, some more reliable than others.
Thread already running here: https://www.pistonheads.com/gassing/topic.asp?h=0&....
Gassing Station | The Lounge | Top of Page | What's New | My Stuff