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Chinese real estate would be considerably better than crypto company loans, tbh.
by darawk 4y ago
Chinese real estate would be considerably better than crypto company loans, tbh.
- wallaBBB 4y agoChinese real estate companies are defaulting on their international bonds en masse and CN government has shown no interest in bailing them on that end.
- thematrixturtle 4y agoBetter to be backed by overvalued, sketchy physical real estate than nothing at all (see also: TerraUSD).
- jimmydorry 4y agoThey are backed by companies with near-zero or less than zero valuation (liabilities > assets). Many of these companies that are defaulting have no money on hand but have already sold apartments that they have not even started building yet. They are equivalent to a crypto that the market has lost faith in (both are worth nothing).
- dubswithus 4y agoAccording to Advchina, the underlying asset is of such poor quality that they will be torn down or abandoned. And from my understanding owning a property doesn’t mean you own it forever. It’s time limited by the government.