Here's why the Evergrande crisis is not China's 'Lehman moment'

He expects that if Evergrande can get some cash flow into its physical assets, the company can finish its development projects, sell them and start paying down debt.

"Evergrande is facing a liquidity crunch although it owns a large land bank," Larry Hu, chief China economist at Macquarie, said in a report Tuesday. He noted the developer's assets consist primarily of land and housing projects that are worth just over 1.4 trillion yuan .China Beige Bookled to a crash in financial derivatives — credit default swaps and collateralized debt obligations — "causing the market to doubt the health of other banks," Hu said.

"As the result, [the] local government has a strong incentive to stabilize land price. In the worst-case scenario, local government could even buy back land, as they did in 2014-15," he added.Another critical difference in Evergrande's case is the greater level of government control and involvement in China's real estate industry.

Jim Cramer talking about President Xi Jinping of China leadership. The NERVE! Then he gives a shout out to warmonger David Ignatius. Smh!

Net Net. 1). Executives will be punished. 2). Homebuyers awaiting homes will be made whole. 3). Shareholders. Good luck because Xi cares less about stock equity. Bigger issue is China consumer. If they slow down, Wall street has internationals will drag the market lower.

This is the difference between China and the west, China never allow a big company bankruptcy and vanish... Take it to state ownership

Rippy rippy

Two days ago it was! Pls, make up your minds.

This is buyback signal.

“Here’s an article on how we manipualate markets”

First, all the assets the company holds have become the guaranty of the bank, which means there are not any assets that can provide cash flow directly. Secondly, the Chinese government can not control everything such as the stock market from 6000points to 1674points.

Just here for the comments

Consumer mortgages are secured against the property, therefore in case of mortgage default the lender repossesses that property. So the lender does own land indirectly, so its basically the same. The only difference is EG can delay 'repossessions' if they can somehow pay up.

I believe the opposite of what you publish. This title simply means this is a Lehman moment lol.

It’s the CCP that’s why end of story. Different rules different outcome different politics.

PEC-Pie白皮书-介绍

The bulls are argueing that evergrande is not China’s Lehman moment while bears insisting YES.🧐

It’s

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