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This is not even frontpage of ft, bloomberg etc. Bloomberg Europe TV station talks about Johnson & Johnson factory problems in China but not Evergrande. My rea

by qnsi 5y ago

This is not even frontpage of ft, bloomberg etc. Bloomberg Europe TV station talks about Johnson & Johnson factory problems in China but not Evergrande. My reading from above pieces of information: it's not that important yet. Maybe they will pay late again as they did previously when they were late one day.

nwidynski 5y ago
Well this time they already were inside a 30-day grace period which as of 3 hours ago they missed aswell, hence the default.
- riffraff 5y ago
  It's unclear if they paid or not, even last time the creditors received the Money the day after the 30 days had passed. It seems they didn't but we won't know until tomorrow or so.
  - raesene9 5y ago
    One organization who states that they are a creditor has published a letter stating that they've not been paid https://twitter.com/dhthakur745/status/1458499174026997760?s=20 https://twitter.com/dhthakur745/status/1458499174026997760?s...
    - riffraff 5y ago
      AFAIU that refers to "we've not Received money by the end of the day". But the clearinghouse managing the bonds said those have been paid later, just like last time. Notice the latter also says "they defaulted again", which is not true. https://news.yahoo.com/evergrande-makes-overdue-interest-payments-024059615.html https://news.yahoo.com/evergrande-makes-overdue-interest-pay...
mpalczewski 5y ago
The news doesn't decide what to run based on importance but rather based on salience. As someone that is financially versed, even I have trouble grasping the why this is a big deal. Complicated things don't get run. Whereas J&J factory problems, that sounds like a covid thing and it's easy to see why that might be important.
- boringg 5y ago
  People are concerned about this because of 2 reasons: (1) to see what the PRC does to contain the risk (it looks like they have contained the majority of the risk and forced the executives to pay from their own wealth [smart signaling]) (2) Broader narrative of concern around contagion effects from a Chinese real estate collapse and from a global media perspective its a great FUD similar to wall street financial collapse in the aughts on the surface but once you look deeper not similar at all. Theres always interest to see if a house of cards is about to fall. Also this sells newspaper / clickthrough ad dollars. It's important to watch but the ripple effects on this look to be small and likely to be contained in China.
acomjean 5y ago
Its actually been on DW (german) news for a while. They spent an hour discussing it last week. It was in my feed often enough that I figured I should take a look after the 4th or 5th story.. But your right, it hasn't hit major media in any form. https://www.youtube.com/watch?v=f5Qi4oB1W_8 https://www.youtube.com/watch?v=f5Qi4oB1W_8
Swizec 5y ago
For what it's worth, the Economist has been showing this in their daily "5 most important stories today" section of the app for the past month or two. Comes up at least once a week. Maybe the typical Economist readership cares more about this. I for one did not quite grok the importance or the implications, but it's been interesting to hear about.
h2odragon 5y ago
"The leak from that dam has been going on for years, and only the one crazy guy keeps making noise about it. We'll just enjoy our home under it by the stream until it becomes important"
TeeMassive 5y ago
Bloomberg, the person, is partial and biased towards China. Many of his interviews has made that very clear.

by qnsi 5y ago

nwidynski 5y ago

Well this time they already were inside a 30-day grace period which as of 3 hours ago they missed aswell, hence the default.

riffraff 5y ago
It's unclear if they paid or not, even last time the creditors received the Money the day after the 30 days had passed. It seems they didn't but we won't know until tomorrow or so.
- raesene9 5y ago
  One organization who states that they are a creditor has published a letter stating that they've not been paid https://twitter.com/dhthakur745/status/1458499174026997760?s=20 https://twitter.com/dhthakur745/status/1458499174026997760?s...
  - riffraff 5y ago
    AFAIU that refers to "we've not Received money by the end of the day". But the clearinghouse managing the bonds said those have been paid later, just like last time. Notice the latter also says "they defaulted again", which is not true. https://news.yahoo.com/evergrande-makes-overdue-interest-payments-024059615.html https://news.yahoo.com/evergrande-makes-overdue-interest-pay...

mpalczewski 5y ago

The news doesn't decide what to run based on importance but rather based on salience. As someone that is financially versed, even I have trouble grasping the why this is a big deal. Complicated things don't get run. Whereas J&J factory problems, that sounds like a covid thing and it's easy to see why that might be important.

boringg 5y ago
People are concerned about this because of 2 reasons: (1) to see what the PRC does to contain the risk (it looks like they have contained the majority of the risk and forced the executives to pay from their own wealth [smart signaling]) (2) Broader narrative of concern around contagion effects from a Chinese real estate collapse and from a global media perspective its a great FUD similar to wall street financial collapse in the aughts on the surface but once you look deeper not similar at all. Theres always interest to see if a house of cards is about to fall. Also this sells newspaper / clickthrough ad dollars. It's important to watch but the ripple effects on this look to be small and likely to be contained in China.

acomjean 5y ago

Its actually been on DW (german) news for a while. They spent an hour discussing it last week. It was in my feed often enough that I figured I should take a look after the 4th or 5th story.. But your right, it hasn't hit major media in any form. https://www.youtube.com/watch?v=f5Qi4oB1W_8 https://www.youtube.com/watch?v=f5Qi4oB1W_8

Swizec 5y ago

For what it's worth, the Economist has been showing this in their daily "5 most important stories today" section of the app for the past month or two. Comes up at least once a week. Maybe the typical Economist readership cares more about this. I for one did not quite grok the importance or the implications, but it's been interesting to hear about.

h2odragon 5y ago

"The leak from that dam has been going on for years, and only the one crazy guy keeps making noise about it. We'll just enjoy our home under it by the stream until it becomes important"

TeeMassive 5y ago

Bloomberg, the person, is partial and biased towards China. Many of his interviews has made that very clear.