PROPERTY

[nipper]

Will it flow on to here?

 

Evergrande in China .... cracks appearing.

To put Evergrande’s immense size and importance to the Chinese economy into perspective, its debts amount to around $US315 billion ($A432 billion).

 

That is more than three times the entire debt load of the New Zealand government and around two thirds of all outstanding Australian federal debt.

 

https://www-news-com-au.cdn.ampproject.org/...5533075c68576d7

 

 

[early birds]

https://www.cnbc.com/2021/09/20/evergrande-...properties.html

 

Some economists have warned that the collapse of Evergrande could become China’s “Lehman moment” – a reference to the bankruptcy of Lehman Brothers as a result of the subprime mortgage crisis, which triggered the 2008 global financial crisis.

 

However, Capital Economics’ Simon MacAdam described that narrative as “wide of the mark.

 

 

 

On its own, a managed default or even messy collapse of Evergrande would have little global impact beyond some market turbulence,” MacAdam, a senior global economist at the firm, said in a Thursday note. “Even if it were the first of many property developers to go bust in China, we suspect it would take a policy misstep for this to cause a sharp slowdown in its economy.”

 

As of Friday’s close, the company’s Hong Kong-listed shares have plunged more than 80% year-to-date.

 

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kinda agree with this. my take is share holders will be wipe out, but chinese financial system won't collapse . as for will it flow on to aussie market?? not sure, but aussie property market already on the "hype" this event might trigger a pull back, who knows!!