this post was submitted on 29 Jan 2024
346 points (98.3% liked)

World News

39041 readers
2381 users here now

A community for discussing events around the World

Rules:

Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.


Lemmy World Partners

News [email protected]

Politics [email protected]

World Politics [email protected]


Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 1 year ago
MODERATORS
 
  • A Hong Kong court on Monday ordered the liquidation of real-estate developer China Evergrande Group.
  • Evergrande is the world's most indebted developer with more than $300 billion of total liabilities.
  • It defaulted on its debt in 2021, sending China's struggling property sector into a tailspin.

———

A Hong Kong court on Monday ordered the liquidation of China Evergrande Group, a move likely to send ripples through China's crumbling financial markets as policymakers scramble to contain the deepening crisis.

Evergrande, the world's most indebted developer with more than $300 billion of total liabilities, sent a struggling property sector into a tailspin when it defaulted on its debt in 2021.

That deepened a debt crisis in the sector and sparked many other company defaults in a damaging economic blow that to this day remains a drag on growth.

A liquidation ruling of the developer which has $240 billion of assets will likely jolt already fragile Chinese capital and property markets.

Beijing is now grappling with an underperforming economy, its worst property market in nine years and a stock market wallowing near five-year lows, so any fresh hit to markets could further undermine policymakers' efforts to rejuvenate growth.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 35 points 9 months ago (1 children)

It’s been almost a year now since this whole affair started, I wonder how much they’ve managed to soften the blow to the Chinese economy since.

[–] [email protected] 31 points 9 months ago (3 children)

China is great at sweeping the trash under the rug so my guess the blow will be quite minimal. I do wonder how will this affect Chinese investment culture and real estate has been the investment strategy forever. Now people are slowly realizing that nobody wants to buy or rent their shitty investment and all of it is ghost money.

[–] [email protected] 8 points 9 months ago (2 children)

It's a two sided attack.

On one hand, their investment opportunities are limited. As a normal pleb the most they can do is buy an investment property. Stock market is pretty sketchy and limited to those with decent cash, so it leaves just real estate which is why so much gets pumped into it.

Then on the other side you have population decline. China is literally fucked from old age people and the preference to having a son. More women there also don't want to deal with the entitled little emperor, so they don't get married also. Population is on track to hit 500bill in 2100 (down from 1.4T at its peak). All those billions missing don't need apartments.

When it falls, it's going to be impressive.

[–] [email protected] 21 points 9 months ago (1 children)

Do you mean 500 million and 1.4 billion people?

[–] [email protected] 16 points 9 months ago (1 children)

Imagine trying to share this planet with 1.4 trillion other people 💀

[–] [email protected] 3 points 9 months ago (1 children)

I have a hard enough time seeing myself in the mirror

[–] [email protected] 4 points 9 months ago

Hey guys, I found the vampire.

[–] [email protected] 2 points 9 months ago

Will never fall too soon..

[–] [email protected] 3 points 9 months ago (1 children)

Sweeping trash under the rug doesn't make the trash disappear

[–] [email protected] 7 points 9 months ago

Yeah but when you have a dictatorship you can make people who complain disappear.

So some poor dumdums will be left holding the bags, a few sent to organ harvesting prisons and then rince and repeat. As long as the peasants feel a bit richer every year and the local infra is getting built nobody dares to complain.

[–] [email protected] 2 points 9 months ago* (last edited 9 months ago)

I bet the CCP is going to make the homeowners whole at a minimum to avoid the risk of social instability.