China's housing ministry moves to stabilize property markets as home prices skyrocket in five cities, July 29, 2021. VCG
Zero Hedge: Default Of Second Chinese Developer Sparks China Junk Bond Meltdown As Contagion Explodes
As we expected, Evergrande is only the first cockroach.
With the world waiting to find out the fate of a $260 million bond issued by Jumbo Fortune Enterprises which is guaranteed by Evergrande, and which has no grace period so an event of default could take place as soon as this week (the bond has five business days to make payment subject to administrative and technical error), overnight, stocks and bonds of China’s heavily leveraged property tumbled after a failure by smaller developer Fantasia Holdings Group to repay notes deepened investor concerns about the sector’s outlook. The non-payment forced S&P to downgrade Fantasia (1777.HK) to selective default earlier this morning.
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Update: Chinese developer misses bond payment as stress spreads beyond Evergrande crisis (CNBC)
WNU Editor: These missed bond payments are just more signals that the Chinese economy is under stress. Widespread electrical grid failures are also another sign that things are not going well in China.
More on China's power crisis is here .... China Hit by Worst Power Crisis in a Decade (Legal Insurrection).
1 comment:
"Widespread electrical grid failures are also another sign that things are not going well in China. "
I think I disagree. Have to check it out, but someone told me that China forced factories to shutdown ahead of the summer Olympics to get better air quality for their hosting of the Olympics.
Instead of forcing factories to shutdown they are throttling the ability of them to function. So they are acting like Democrats. Where you are free, very free in America, but you cannot do anything. The CCP is letting the factories to do anything they want. They just won't give them electricity.
The 3 Gorges Dam was supposed to provide 16% of China's electrical energy. Is there a drought?
China learned from the Democrats. Democrats cannot kill the 2nd Amendment. So they went after the suppliers of gun manufacturers like the banks. Chinese worker is out of work and he is mad? It is not the CCP's fault of ordering the factories closed. It is the utilities fault. The CCP is going to swoop in March and fix it after COP26 conference in November and the Winter Olympics in February.
Bonus is, if the shelves are bar in Christmas time then American retailers have a bad Christmas season. Christmas is the earning period that outs many retailers in the black.
TRIPLE Whammy!
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