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20 sats \ 1 reply \ @TheBTCManual 21 Jul 2022 \ on: China reckons with its first overseas debt crisis bitcoin
This sounds ominous, china admitting financial weakness, then it must be way worse than we know, they never claim to have any issues, I mean what ever happened to evergrade? Drama then just went quiet
I don't think China is outright admitting anything regarding how bad their portfolio to BRI countries looks currently. The data is, for the most part, public though -- so they don't need to admit anything, everybody that cares to know already knows.
As far as what happened to Evergrande?
That's answered an article shared with a different post here on SN:
In a jarring case study of what happens when a ponzi scheme goes into reverse, hundreds of contractors to the property industry complained that they can no longer afford to pay their own bills because developers including China Evergrande Group still owe them money, Caixin reported, citing a statement it received from a supplier Tuesday.Similar to homebuyers who have taken a stand and refuse to pay for properties that remain uncompleted, one group of small businesses and suppliers circulated a letter online saying they will stop repaying debts after Evergrande’s cash crisis left them out of pocket.“We decided to stop paying all loans and arrears, and advise our peers to decline any requests to be paid on credit or commercial bill,” the group said in the letter dated July 15, which was sent to the developer’s Hubei office. “Evergrande should be held responsible for any consequence that follows because of the chain reaction of the supply-chain crisis.”
"We Decided To Stop Paying": China's Mortgage Payment Boycott Spreads
#47520
https://www.zerohedge.com/markets/we-decided-stop-paying-all-loans-chinas-mortgage-payment-boycott-spreads-property-suppliers
And also:
China Evergrande Prepares to Shed Light on Restructuring as Creditors’ Patience Wears Thin
https://www.wsj.com/articles/china-evergrande-prepares-to-shed-light-on-restructuring-as-creditors-patience-wears-thin-11658309400
https://archive.ph/ZWdCO
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