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Chinese property market prolapsing - diagram included
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2021-09-19 at 8:22 AM UTCI created this diagram to illustrate the situation:
Chinese property giant Evergrande is on the brink of collapse, and analysts warn the potential fallout could have far-reaching implications that spill outside China’s borders.
https://www.cnbc.com/2021/09/17/china-developer-evergrande-debt-crisis-bond-default-and-investor-risks.html
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The world’s most indebted property developer has been scrambling to pay its suppliers, and warned investors twice in as many weeks that it could default on its debts.
On Tuesday, Evergrande said its property sales will likely continue to drop significantly in September after declining for months, making its cash flow situation even more dire.
The Chinese developer is so huge that the fallout from a potential failure could hurt not only the Chinese economy, but spread to markets beyond.
Banks have also responded to its deteriorating cash flow. Some in Hong Kong, including HSBC and Standard Chartered, have declined to extend new loans to buyers of two uncompleted Evergrande residential projects, said Reuters.
In most of the world people who want to make quick money buy an apartment off the plans - so you pay now, and then in 5 years or so you get a new apartment in a new building. Everyone does this in Russia and Chiner.
Evergrande is just the Lehman Brothers of Chiner, the real problem is that now faith in the system has been destroyed, and people won't be investing in Chinese property so extravagantly. The Bat-Soup-Bandits have a huge property bubble going on, the biggest in the world. All this shit is an order of magnitude bigger than the American property bubble collapse in 2008.The following users say it would be alright if the author of this post didn't die in a fire! -
2021-09-19 at 10:11 AM UTCThink the CCP is gonna bail them out, one way or another?
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2021-09-19 at 11:04 AM UTC
Originally posted by Sophie Think the CCP is gonna bail them out, one way or another?
Line can't only go up. The market is driven by irrational greed and fear nothing will be left (if I don't buy a house I'll never be able to buy one) and irrational terror and fear you will lose everything (who wants a house in this loser town, it's over for this country, the house isn't even worth the price of the bricks used to build it).
Seen this all before. We went from a mad boom around 2006, to a terrible depression around 2011, to another mad boom today. The market is bipolar and insane, and nothing makes people stupider than seeing their neighbour getting rich and being afraid of missing out. -
2021-09-19 at 11:51 AM UTCYou can't even own a house in Chiner. Best you can do is get a 70 year lease. The CCP owns all of the real estate. Not sure how it goes for enterprises. But Chinese citizens can't own a house.
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2021-09-19 at 2:42 PM UTCi'm pretty sure somewhere there owns a house or has at least been living in it for a long time. Where are the communal apartments like russia wtf communists?
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2021-09-19 at 4:01 PM UTC
Originally posted by the man who put it in my hood i'm pretty sure somewhere there owns a house or has at least been living in it for a long time. Where are the communal apartments like russia wtf communists?
In the cities. Like i said you can get a 70 year lease from the government. Interestingly, China had internal passports way before Covid. If you're from the country side you literally can't live in some districts or some cities. -
2021-09-19 at 5:03 PM UTC
Originally posted by Donald Trump Line can't only go up. The market is driven by irrational greed and fear nothing will be left (if I don't buy a house I'll never be able to buy one) and irrational terror and fear you will lose everything (who wants a house in this loser town, it's over for this country, the house isn't even worth the price of the bricks used to build it).
Seen this all before. We went from a mad boom around 2006, to a terrible depression around 2011, to another mad boom today. The market is bipolar and insane, and nothing makes people stupider than seeing their neighbour getting rich and being afraid of missing out.
House values have increased dramatically in the US over the last 18 months. But you wouldn't know not owning one and all. -
2021-09-19 at 5:20 PM UTC
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2021-09-19 at 5:21 PM UTC
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2021-09-19 at 5:34 PM UTC
Originally posted by Donald Trump I created this diagram to illustrate the situation:
https://www.cnbc.com/2021/09/17/china-developer-evergrande-debt-crisis-bond-default-and-investor-risks.html
In most of the world people who want to make quick money buy an apartment off the plans - so you pay now, and then in 5 years or so you get a new apartment in a new building. Everyone does this in Russia and Chiner.
Evergrande is just the Lehman Brothers of Chiner, the real problem is that now faith in the system has been destroyed, and people won't be investing in Chinese property so extravagantly. The Bat-Soup-Bandits have a huge property bubble going on, the biggest in the world. All this shit is an order of magnitude bigger than the American property bubble collapse in 2008.
contrary to what you read, there isnt going to be a lehman-style prolapse. this is because everything in china is sandboxed.
and secondly, collapsing real estate market would be conducive to xi's vision of freeing china off capital renters, as most of these 'investors' arent the average mom and pop who just want a roof over their heads.
these are househole auntie speculators. -
2021-09-19 at 5:36 PM UTC
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2021-09-19 at 5:39 PM UTC
Originally posted by Speedy Parker House values have increased dramatically in the US over the last 18 months. But you wouldn't know not owning one and all.
this is because your capital feudal lords are taking over.
prices of houses in your country is rising because a few trillion dollar asset management funds are buying them enmass to be rented out piece meal to the proles.
soon the water that flows into your house will also become a speculative commodity just like oil. -
2021-09-19 at 5:40 PM UTC
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2021-09-19 at 8:09 PM UTC
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2021-09-19 at 8:22 PM UTCPeople stayed in their apartments when the soviet union collapsed. They didn't "own" them, but who was going to kick them out.
Also as Soviet buildings have aged the government has even had to step in to demolish old Khrushchyovkas and build replacement accommodation. Oddly I think the Stalinkas have aged better than than the newer but more cheaper build Khrushchyovkas. -
2021-09-19 at 8:23 PM UTCchiner 😂
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2021-09-19 at 8:24 PM UTC
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2021-09-19 at 11:08 PM UTC
Originally posted by Donald Trump People stayed in their apartments when the soviet union collapsed. They didn't "own" them, but who was going to kick them out.
Also as Soviet buildings have aged the government has even had to step in to demolish old Khrushchyovkas and build replacement accommodation. Oddly I think the Stalinkas have aged better than than the newer but more cheaper build Khrushchyovkas.
Stalinkas are just concrete, lol. -
2021-09-19 at 11:48 PM UTC
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2021-09-20 at 3:19 PM UTC
Originally posted by vindicktive vinny this is because your capital feudal lords are taking over.
prices of houses in your country is rising because a few trillion dollar asset management funds are buying them enmass to be rented out piece meal to the proles.
soon the water that flows into your house will also become a speculative commodity just like oil.
Actually it has nothing to do with the nonsense you typed. It has to do with the cost of materials.
