Tag: China Evergrande Group

What to Know About Evergrande

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What to Know About Evergrande Lauren HirschReporting for DealBook 💼 Why is Evergrande in trouble? China’s property market cooled and regulators are cracking down on the aggressive borrowing habits of developers. A bailout of Evergrande could encourage investors to pour more money into troubled companies. But a messy collapse could hit property prices and household wealth, and it could also make it harder for other Chinese companies to get money from foreign investors. NYT

A Strange Voice on the Phone

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Angela Merkel’s party comes up short in Germany. In yesterday’s election, the center-left Social Democratic Party led by Olaf Scholz won 1.6 percentage points more of the vote than Merkel’s Christian Democratic Party. But with only around 26 percent of the vote, the Social Democrats will have to form a coalition to govern, which could get messy. The Transition to Electric Cars Britain struggles with fuel shortages and other supply disruptions. Panic buying led to long lines at gas stations over the weekend, with many saying that they are now…

The Economy Looks Solid. But These Are the Big Risks Ahead.

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The low-hanging fruit of the pandemic economic recovery has been eaten. As a result, the expansion is entering a new phase — with new risks. For months, the world economy has expanded at a torrid pace, as industries that were shut down in the pandemic reopened. While that process is hardly complete — numerous industries are still functioning below their prepandemic levels — further healing appears likely to be more gradual, and in some ways more difficult. Reopening restaurants and performance arenas is one thing. Fixing extraordinary backups in shipping…

Wonking Out: This Might Be China’s ‘Babaru’ Moment

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OK, who ordered that? You’d think that between Covid-19, climate change and U.S. democracy under siege, we would already have enough crises on our plate. A potential Chinese financial meltdown is the last thing we need. Yet here we are. The story of the moment is Evergrande, a huge, heavily indebted real estate company that appears on the edge of default. The echoes of the global financial crisis 13 years ago are obvious. The conventional wisdom is that Evergrande isn’t another Lehman Brothers, that any fallout from its woes, and…

Who’s Buying Evergrande?

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A look inside Robinhood during meme-stock mania The trading app Robinhood has grown explosively, gone public and, for good measure, is now getting into crypto wallets. But internal exchanges between company managers revealed in a new legal filing — featuring Robinhood’s C.E.O., Vlad Tenev — highlight the tensions between fast growth and consumer protection. A class-action lawsuit brought by Robinhood users alleges that the company was negligent during a period of extreme market volatility in late January, knowing it had insufficient capital to handle all the trading by new and…

Beyond Evergrande’s Troubles, a Slowing Chinese Economy

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BEIJING — Global markets have watched anxiously as a huge and deeply indebted Chinese property company flirts with default, fearing that any collapse could ripple through the international financial system. China Evergrande Group, the developer, on Wednesday said it reached a deal that might give it some breathing room in the face of a bond payment due the next day. But that murky arrangement doesn’t address the broader threat for Beijing’s top leaders and the global economic outlook: China’s growth is slowing, and the government may have to work harder…

What Would an Evergrande Default Look Like?

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Shares of China Evergrande, the troubled real estate giant whose fate has contributed to jitters in global markets, fell again on Tuesday amid a new prediction that it would soon default. The company’s chairman, Xu Jiayin, told employees in a letter quoted in Chinese media that Evergrande would surmount its problems, which include $300 billion in debt, plunging sales of apartments and a payment due Thursday. “I firmly believe that Evergrande will walk out of its darkest moment and resume full-speed work and production,” he said in the letter, which…

Evergrande Gave Workers a Choice: Loan Us Cash or Lose Your Bonus

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When the troubled Chinese property giant Evergrande was starved for cash earlier this year, it turned to its own employees with a strong-arm pitch: Those who wanted to keep their bonuses would have to give Evergrande a short-term loan. Some workers tapped their friends and family for money to lend to the company. Others borrowed from the bank. Then, this month, Evergrande suddenly stopped paying back the loans, which had been packaged as high-interest investments. Now, hundreds of employees have joined panicked home buyers in demanding their money back from…

China Evergrande Warns of Financial Pressure, Hires Advisers

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China Evergrande, the troubled property giant that has become a symbol of debt and excess in the world’s second-largest economy, said on Tuesday that it faced “tremendous” financial pressure and had hired restructuring experts to “explore all feasible solutions” for its future. The company’s fate, however, remains unclear, as it struggles in a country where business troubles often attract the direct attention — and the direct meddling — of Beijing. Evergrande’s admission that its finances have taken a sharp turn sent its already battered shares down by 12 percent on…

Why Evergrande’s Debt Problems Threaten China

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Every once in a while a company grows so big and messy that governments fear what would happen to the broader economy if it were to fail. In China, Evergrande, a sprawling real estate developer, is that company. Evergrande has the distinction of being the world’s most debt-saddled property developer and has been on life support for months. A steady drumbeat of bad news in the recent weeks has accelerated what many experts warn is inevitable: failure. The ratings agency Fitch said this week that default “appears probable.” Moody’s, another…