{"id":14200,"date":"2021-11-11T17:54:05","date_gmt":"2021-11-11T17:54:05","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/chinas-real-estate-giant-evergrande-narrowly-dodges-default-for-third-time-in-30-days\/"},"modified":"2021-11-11T17:54:05","modified_gmt":"2021-11-11T17:54:05","slug":"chinas-real-estate-giant-evergrande-narrowly-dodges-default-for-third-time-in-30-days","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/chinas-real-estate-giant-evergrande-narrowly-dodges-default-for-third-time-in-30-days\/","title":{"rendered":"China\u2019s Real Estate Giant Evergrande Narrowly Dodges Default for Third Time in 30 Days"},"content":{"rendered":"

In mid-September China\u2019s Evergrande Group, the country\u2019s second-largest property developer by sales, sparked fear in the global economy as the company\u2019s market valuation plummeted to an 11-year low. Global economists have warned that if Evergrande defaults on its debts, it could start a credit contagion similar to the Lehman Brothers bankruptcy in 2007. So far, Evergrande has managed to dodge default on its loans three times in the past month, but Evergrande bondholder Deutsche Marktscreening Agentur (DMSA) seems to be preparing to file for bankruptcy against the real estate giant.<\/strong><\/p>\n

Credit Contagion Stemming From Real Estate Sector Looms \u2014 Evergrande Wobbles, Zillow Falters<\/h2>\n

The real estate market worldwide has issues and a number of occurrences have shown that major corporations dealing with properties are struggling. China\u2019s Evergrande is just one piece of the puzzle as real estate markets across the globe are feeling a squeeze. For instance, the major real estate company Zillow revealed<\/a> during the first week of November that the firm would stop buying and renovating properties. Furthermore, Zillow cut 25% of the company\u2019s workforce as Zillow lost $304 million in Q3 2021.<\/p>\n

News reports around #Evergrande<\/a> is very troubling. One group is pushing, it has avoided default; and on the other side #DMSA<\/a> is saying they, bondholders, have not received a payment. Extra precaution is needed. I am out. Maybe they wants big guys to sell before telling the truth.<\/p>\n

\u2014 Raymond Taptu\u00e8 (@RaymondTaptue1) November 11, 2021<\/a><\/p>\n<\/p>\n

China\u2019s Evergrande has been wobbling for quite some time and on Wednesday people assumed<\/a> the real estate giant would default on its bond payments. According to a letter<\/a> from the bondholder DMSA, Evergrande failed to meet the interest payment deadline. Despite the DMSA claims and its attempts to get other bondholders to file bankruptcy against the Chinese real estate corporation, a Clearstream representative told<\/a> Bloomberg that the company had received interest payments and Evergrande deferred default.<\/p>\n

US Central Bank Warns Evergrande\u2019s Problems Could Pose Risks to Global Economic Growth<\/h2>\n

This is the third time<\/a> Evergrande has narrowly avoided default in the last 30 days and DMSA is not the only associated firm complaining. Rival Kaisa Group is one of Evergrande\u2019s largest bondholders and has already begged for help<\/a> from creditors and the Chinese government. No one knows if Beijing will continue to help Evergrande, but during the last few weeks, the company\u2019s top executives have been meeting with China\u2019s regulators and government officials.<\/p>\n

#Evergrande<\/a>‘s story is another one about moral hazard and incentives driving misbehavior.<\/p>\n

China & US are much alike than they think. Human Nature has no frontiers.<\/p>\n

\u2014 Andres Pineda (@andresp1neda) November 11, 2021<\/a><\/p>\n<\/p>\n

Meanwhile, the U.S. Federal Reserve has also warned<\/a> that Evergrande\u2019s woes could spread globally if not dealt with soon, noting: \u201cStresses in China could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States.\u201d As DMSA preps bankruptcy proceedings, the company\u2019s senior analyst Marco Metzler brought up the Fed\u2019s warning.<\/p>\n

\u201cWhile the international financial market has so far met the financial turmoil surrounding the teetering giant Evergrande with a remarkable basic confidence \u2013 one can also say: with remarkable naivety \u2013 the U.S. central bank Fed confirmed our view yesterday,\u201d Metzler stressed. \u201cIn its latest stability report, it explicitly pointed out the dangers that a collapse of Evergrande could have for the global financial system,\u201d the DMSA representative said.<\/p>\n

You have seen the #GME<\/a> and #AMC<\/a> articles day after day bashing these stock<\/p>\n

Now the media is saying that #Evergrande<\/a> didnt default because they made interest payments<\/p>\n

DMSA says otherwise<\/p>\n

I don’t trust the media, they are trying to squeeze every dime they can out of Evergrande<\/p>\n

\u2014 Batman Stonks (@StonksBatman) November 11, 2021<\/a><\/p>\n<\/p>\n

Furthermore, the recently published Bloomberg report which quotes the Clearstream representative also quotes two unnamed Evergrande bondholders. According to the anonymous sources, Evergrande had distributed interest payments to them on Wednesday late afternoon (ET). The sources remained anonymous because \u201cthey weren\u2019t authorized to speak publicly.\u201d Evergrande\u2019s distress has caused speculators to wonder<\/a> whether or not the U.S. housing market will be the next to falter, especially after Zillow\u2019s issues and the median home price in the country spiking over 25% in five quarters.<\/p>\n

What do you think about the problems Evergrande bondholders face and the possibility of a credit contagion? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nEconomics, bondholders, bonds, China, China Evergrande, China Housing Market, China real estate, Clearstream, credit contagion, Credit Crisis, debt default, Default, DMSA, economics, Evergrande, Evergrande Group, inflation, Lehman Brothers, Rival Kaisa Group, US, US Housing Market, US Real estate, Zillow<\/p>\n","protected":false},"excerpt":{"rendered":"

In mid-September China\u2019s Evergrande Group, the country\u2019s second-largest property developer by sales, sparked fear in the global economy as the company\u2019s market valuation plummeted to an 11-year low. Global economists have warned that if Evergrande defaults on its debts, it could start a credit contagion similar to the Lehman Brothers bankruptcy in 2007. So far,…<\/p>\n","protected":false},"author":0,"featured_media":14201,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-14200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14200"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=14200"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/14201"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=14200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=14200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=14200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}