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Evergrande: the end of China’s property boom | FT Film

The rapid expansion of China’s property sector was powered by a great migration from the farms to the cities – and built on cheap credit. The FT tells the story of Evergrande, the most indebted property developer in the world, which now stands on the brink of collapse. It’s a story that changes the outlook for China’s position as the locomotive of global economic growth. But is this China’s Lehman Brothers moment? Read more at https://on.ft.com/3tNHO0j

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Written by Financial Times

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  1. No matter how hard you train, if your diet is poor you probably won't make any significant progress. You can't out-train a bad diet and I can't emphasize this enough. It is the same with investment.

  2. Look at yourself in the mirror before you are talking trash about someone else business. The U.S FE is holding 19T$ debt under his belly right now, and about 70% of the debt is backup for both commercial and residence loan. You are biggest scam of all time in history.

  3. I’ve always been baffled by the need to own multiple houses yet only use one. They don’t use it, they don’t rent it, and they don’t flip it so what is the point? Owning a third property in an empty city that makes no profit is weird.

  4. One thing that has not been mentioned is the greed on the buyers side !
    They didn't all bought their flat(s) to live in it, for many is was pure speculation. Thinking that real estate prices will always go up and that something they buy today at 1000 they will be able to flip it over at 2 or 3 times more in less than 5 years.
    I have lived 8 years in HKG, and the same game was going on. As a result real estate prices have gone to absurd levels, with as consequence that the new generation, starting in life will never be able to own a flat.
    Or like said in this report, they'll need 50 years to pay it off.
    And in a culture / country where there is no real government system to take care of the elders, as traditionally the kids take care of them.
    But now, if the kids can't buy a flat, what is going to happen ?

  5. Damn, that woman has the worst vocal fry I have ever heard, especially for someone who speaks publicly. Listen to newscaster Rosemary Church. Great voice, smooth, deep, well modulated..

  6. Yeah. they left the farms where they were making next to nothing But now they owe Hundreds of thousands instead. I doubt they'd make that choice again

  7. I don't think it will affect the boom. That is like saying just because of one property developer in the USA will cause the end of a property boom. It will not happen.

  8. The focus should not be on real estate per se. Many of those apartments were never designed to be lived in. Have no human amenities. They are just boxes in the sky.

    This is what happens when government control is so tight they only allow citizens to invest in one thing. In this case it is real estate. Everything else is banned. Real estate then takes on an entirely new meaning. It becomes something to be traded. That becomes its use. Whether or not it’s livable is immaterial. It is the analog version of an NFT.

    Problem is this system is a one trick pony. If the pony gets sick the entire system catches a cold. It all circles back to what happens when government clamps down too hard on citizens. Similar to their one-child policy fiasco China tends to repeat these mistakes a lot.

    But the west is catching up, unfortunately.

    The moral of the story is: Centralization is always bad (No matter what China or Klaus Schwab and his minions say). Decentralization is always good. Personal and national sovereignty is the antithesis of authoritarian globalization.

  9. All the glory of an authoritarian state and command economy coming home to roost. Just like how the world was with Nazi Germany before WW2. If you are/have been oogly-eyed over China, you are the exact same person that was that way with the Nazi's and by extension financed their invasions and genocides. There is already so much blood on your hands. Decouple immediately to prevent that number from growing exponentionally, you're already financing genocide and have been for some time.

  10. This video feels very out of date. Didn't Evergrande start having trouble back in July 2021?
    This video didn't seem like it had much to say beyond Evergrande had trouble paying its bonds back in September 2021.
    Like one thing it easily could've gone into is how these are dollar denominated bonds, not Chinese RMB bonds.

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