General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTwo Chinese Real Estate Forecast firms have Defaulted.
https://www.france24.com/en/live-news/20211209-two-chinese-property-firms-default-on-1-6-billion-in-bonds-fitchEvergrande finally failed to pay off on 1.6 billion dollars worth of bonds. A smaller firm defaulted on a mere 400 million. According to Bloomberg this makes ten Chinese real estate firms that have failed.in recent weeks.
Throck
(2,520 posts)Irish_Dem
(47,184 posts)In quite a few cases, they never even live in the property; the houses or flats sit empty. There are areas in China where row after row of new homes are vacant, just sitting there as an investment. It is odd.
When the American housing market and stock market crashed, the Chinese people were aghast that the US government did very little to help the every day American during the crises. And that the US government allowed retirement accounts to take such a big hit.
We shall soon see what the Chinese government will do in a similar situation.
JCMach1
(27,562 posts)This would likely hollow out the Chinese economy
dclarston13
(412 posts)From these defaults. Did values of the properties fall, if so how are those properties valued? Seems like this may be a leading indicator of things to come.
Hortensis
(58,785 posts)of the economy, as part of imposing Xi Jingping Thought, "socialism with Chinese characteristics" under the effective dictatorship of Xi. The party's recently pumped a bunch of money into the economy to shore things up, try to avoid deflation, fill holes and spread gravel on a very rocky road, etc, as the capitalist engines of prosperity are tamped down. No doubt more to come.
Hard on a lot of ordinary working people who've invested in RE. But the new ultrawealthy classes in particularly don't fit in "Xi Thought." Their investments, and huge debts, are dispersed throughout China's economy.