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The question is then whether they actually have enough assets to pay their debts.
by nwah1 3y ago
The question is then whether they actually have enough assets to pay their debts.
- more_corn 3y agoOoh! I got this one. They do not.
- seanmcdirmid 3y agoThe bigger question is if China is going to prioritize local debt holders over overseas debt holder (everyone should take a massive haircut though), and what happens to the apartments they've sold but not built yet (since Chinese banks have lent money to people to buy those).
- rossdavidh 3y agoOoh! I got this one! They will.
- BeFlatXIII 3y agoGood, a nation with self-respect.
- dageshi 3y agoIs there that much chinese debt owned by overseas investors? I'd always thought the chinese deliberately insulated their financial system as much as possible to avoid foreign influence over their economy.
- seanmcdirmid 3y agoEnough of it: https://www.reuters.com/business/china-evergrande-offshore-bondholder-group-join-liquidation-petition-sources-2024-01-24/ https://www.reuters.com/business/china-evergrande-offshore-b... About $2b worth out of $300b of debt, so not that much, although I'm not sure if this is just one group of many.
- nwah1 3y agoI wonder what the approximate shortfall is.
- spywaregorilla 3y ago300B of debt is the common number. shortfall unclear.
- loeg 3y agoAllegedly 240B in assets, but who knows how real any of those are: https://www.reuters.com/business/embattled-china-evergrande-back-court-liquidation-hearing-2024-01-28/ https://www.reuters.com/business/embattled-china-evergrande-...
- seanmcdirmid 3y agoThey might not be very liquid, and there might not be a market for them at the current "market price" (China will often suppress real estate sales to prevent market prices from dropping).
- loeg 3y agoI think the current reporting is tens of billions of dollars (like ~$60B). https://www.reuters.com/business/embattled-china-evergrande-back-court-liquidation-hearing-2024-01-28/ https://www.reuters.com/business/embattled-china-evergrande-...
- foobarbaz33 3y agoYo dawg. I heard you like leverage. So I put some leverage inside your leverage to help prevent the tower of leverages from falling.