US vs China vs EU...the Global Trade war.

  • Thread starter Deleted 24582
  • Start date
More financial jitters with the Chinese property market.

'Modern Land (1107.HK) has missed a bond payment, the latest Chinese property developer to do so, adding to worries about the wider impact of the debt crisis at behemoth China Evergrande Group (3333.HK), and dragging on shares in the sector.

'China's state planner was set to meet property firms carrying large dollar-denominated debts on Tuesday to take stock of their total issuance volume and repayment capability, amid mounting concern about liquidity.

'Modern Land (China) Co Ltd said in a filing that it had not repaid principal and interest on its 12.85% senior notes that matured on Monday due to "unexpected liquidity issues".'


Start saving your money, the Chinese have hit a brick wall. The numbers for the 3rd quarter over here will be grim and I can tell you the 4th quarter is already shot.
 
More signs of concern with the Chinese markets.

'Kaisa Group Holdings (1638.HK) needs help to pay investors, workers and suppliers, the developer told a meeting of a Chinese government think-tank, banks and property firms, according to a source with direct knowledge of the matter.

'China's real estate sector has been hit by a liquidity squeeze, exacerbated by the troubles of China Evergrande Group (3333.HK). That has resulted in offshore defaults, credit rating downgrades and sell-offs in some developers' shares and bonds.

'The U.S. Federal Reserve said on Monday stresses in China's real estate sector, caused in part by a regulatory focus on debt-laden firms, as well as a sharp tightening of global financial conditions could pose some risks to the U.S. financial system.

"Given the size of China's economy and financial system... financial stresses in China could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States," it said in its latest report on financial stability.

'Underscoring the liquidity crunch, Fitch downgraded Kaisa deeper into default category on Tuesday, citing a deteriorating liquidity situation, undisclosed debt from wealth-management products, and limited progress on asset disposals.

'The developer said it was trying to solve its liquidity problems, was consulting investors in wealth management products about better payment solutions, and pleaded for more breathing space.

"We sincerely ask investors to give Kaisa Group more time and patience," it said in a statement on its official WeChat account late on Monday.'


 
When China sneezes (or coughs in the case of COVID) everyone is in danger of catching a cold (or a global pandemic).

'The two US asset managers are among the largest investors in Evergrande.

'BlackRock and Vanguard are among the largest shareholders in Evergrande that have posted hundreds of millions of dollars in paper losses following a more than 80% share price drop in the troubled Chinese property developer.

'Data from S&P Capital IQ show US-based Vanguard, Evergrande's third-largest shareholder, has seen the market value of its holding plummet by $156m since the beginning of January as the Chinese company teeters on the brink of collapse.'


 
When China sneezes (or coughs in the case of COVID) everyone is in danger of catching a cold (or a global pandemic).

'The two US asset managers are among the largest investors in Evergrande.

'BlackRock and Vanguard are among the largest shareholders in Evergrande that have posted hundreds of millions of dollars in paper losses following a more than 80% share price drop in the troubled Chinese property developer.

'Data from S&P Capital IQ show US-based Vanguard, Evergrande's third-largest shareholder, has seen the market value of its holding plummet by $156m since the beginning of January as the Chinese company teeters on the brink of collapse.'


This is convenient
 

Latest Threads

Top