I think it may go bankrupt but the Chinese government will buy out the assets under it and support the market. I would be concerned if it completely got destroyed though because its like 29% of its economy.
I was right on the intervention but I guess the chance of defaulting and bankruptcy is still on the table.
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29% of the economy of the People's Republic of China-- !@#$#@!-A !!
:O:O:OAfter a company goes bankrupt, its assets are sold at small fractions of the local currency to any interested buyers. Other assets are sold to pay creditors luck enough to collect (when government is involved, it's like Darth Vader renegotiating his deal with Lando Calrissian in The Empire Strikes Back.)
The Chinese economy may be large enough to take the hit on Evergrande going bankrupt, but it will definitely be painful for the ruling party as well as the people. We shall see what happens next.
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Well the real estate market is 29%. If Evergrande falls hard, it will crash prices and affect supply lines so the impact on their economy will be quite large. Even if it does go down, they have to at least minimize the damage.
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Hard it will fall, about that there is no doubt. The question is, how far do the ripple effects go? How will it effect people 12 time zones away? PRC and CCP will minimize the damage, but it will still be mind-blowing in magnitude.
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It will affect everyone since China is linked to markets all around the world. Personally I think the prices of commodities will suffer and it will cascade to other industries.
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The price drops in commodities would be even worse if demand for them simply disappears. If supply chain woes continue, it will get ugly with or without an Evergrande bankruptcy.
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Yea, the people usually end up paying for the mistakes of those greedy bastards. I've seen that happen more than a few times in my life
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I've lived it too. It can be a life-changing experience. I may not even be on Hive today had things turned out differently then.
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