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Evergrande shares plunge as much as 87% as trading resumes after 17 months

cnbc.com

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Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#11

Post by irjustin »

jldugger wrote: post #10
hellothere1337 wrote: post #8

[flagged]

In what sense was the Evergrande situation caused by geopolitics? I was under the impression causes and effects were wholly domestic.

This post screams agenda. What is "warning shot"? They shot themselves in the foot with a property bubble to anger the US!!??

I'd move on.

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#13

Post by Jedd »

irjustin wrote: post #7
xwdv wrote: post #4

Feels bad for the people paying mortgages for homes they’ll never get to see. They can’t just stop paying either. Doesn’t work that way.

Government needs to step in and investors need to write it as a total loss. Making people pay could collapse the entire economy.

> Government needs to step in and investors need to write it as a total loss.

Ahh yes, the ol' "privatise the profits, socialise the losses" approach to big finance failures.

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#14

Post by zeroCalories »

irjustin wrote: post #7
xwdv wrote: post #4

Feels bad for the people paying mortgages for homes they’ll never get to see. They can’t just stop paying either. Doesn’t work that way.

Government needs to step in and investors need to write it as a total loss. Making people pay could collapse the entire economy.

Meh. I understand property is pretty much the only viable investment a person can make in China, but these investors should have known what they were buying. Makes me think of idiots that lost big in crypto. The bubbles value has already been spent, so someone is going to have to bag hold. Either the government should buy and forgive all the debt, or the investors should get fucked for overplaying their cards. Maybe they can fake their death or escape to another country.

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#15

Post by noobermin »

irjustin wrote: post #7
xwdv wrote: post #4

Feels bad for the people paying mortgages for homes they’ll never get to see. They can’t just stop paying either. Doesn’t work that way.

Government needs to step in and investors need to write it as a total loss. Making people pay could collapse the entire economy.

Could someone key me in to this? I thought generally the Chinese government never shied away from stepping in and manipulating things. Recent trends (for example, the government blaming young people themselves for their low employment numbers) feels like they imported the bootstraps mindset from American politicians, which seems out of step with what was seen as them being rather direct in control of their economy. Recent actions from the government seem to be opposite this.

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#16

Post by Mengkudulangsat »

xwdv wrote: post #4

Feels bad for the people paying mortgages for homes they’ll never get to see. They can’t just stop paying either. Doesn’t work that way.

They are doing mortgage boycotts in China as a form of collective action. Very interesting to see how that plays out.

[1] https://www.reuters.com/world/china/chinas-mortgage-boycott-...

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#18

Post by hellothere1337 »

noobermin wrote: post #12
hellothere1337 wrote: post #8

[flagged]

The evergrande situation has nothing to do with the US or the trade war or the political tensions between PRC and the USA, it has more to do with the internal economic situation of China really.

The internal economic situation if China is related to the external economic situation of China

Re: Evergrande shares plunge as much as 87% as trading resumes after 17 months

#19

Post by starfallg »

jldugger wrote: post #10
hellothere1337 wrote: post #8

[flagged]

In what sense was the Evergrande situation caused by geopolitics? I was under the impression causes and effects were wholly domestic.

The treatment of stakeholders have been different inside and outside of China. The assumption based on the experience so far is that inevitably overseas investors, such as US based entities, will lose out more.

Chinese firms have been raising money in overseas markets and has been exporting risk in this way, the issue is how China's government will handle this against the opaque corporate structure behind these financial instruments sold overseas.

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