China Evergrande Troubles Spread Through Property Sector

china evergrande troubles spread through property sector scaled

When times were flush for the property developer China Fortune Land, it bought a trophy soccer club and recruited star athletes from Argentina. These days, the players with the club, Hebei F.C., are on indefinite leave because it can’t afford to keep the lights on. The developer is one of a growing number facing financial strain in China, challenging the narrative from Beijing that it can keep the country’s corporate debt crisis under control while avoiding the disorderly collapse of its property giants. Global markets just weeks ago were fretting…

Goldman Sachs Wins Approval to Buy Out Partner in China

goldman sachs wins approval to buy out partner in china scaled

Goldman Sachs has won approval to take full ownership of a joint venture in China, enabling the Wall Street firm to expand its operations in the country at a time when Beijing has made moves to open up its financial sector. The go-ahead from the China Securities Regulatory Commission for Goldman Sachs to buy out Beijing Gao Hua Securities, its local partner, comes as Beijing tries to make good on a pledge it made in 2017 to allow foreign investment banks to fully own their China operations. “This marks the…

Why Wall Street Backs China Despite Beijing’s Tighter Grip

why wall street backs china despite beijings tighter grip

This year has been unsettling for Chinese business. The ruling Communist Party has gone after the private sector industry by industry. The stock markets have taken a huge hit. The country’s biggest property developer is on the verge of collapse. But for some of the biggest names on Wall Street, China’s economic prospects look rosier than ever. BlackRock, the world’s biggest asset manager, urged investors to increase their exposure to China by as much as three times. “Is China investable?” asked J.P. Morgan, before answering, “We think so.” Goldman Sachs…

China Evergrande’s Shares Are Halted as Doubts Swirl

china evergrandes shares are halted as doubts swirl

Shares of China Evergrande were halted on Hong Kong’s stock exchange on Monday pending a deal, as doubts swirled over whether the struggling property giant would be able to meet its immense financial obligations. Evergrande said in a filing that its shares were halted ahead of an announcement about a “major transaction.” It gave no additional details. The real estate developer — once China’s most prolific — has been under close watch by foreign investors and local regulators after it missed two important interest payments on U.S. dollar bonds. The…

What to Know About Evergrande

what to know about evergrande

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

a strange voice on the phone

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…

Business groups are divided as China seeks self-reliance.

business groups are divided as china seeks self reliance

China’s push for self-sufficiency in a wide range of industries is dividing foreign companies, with some welcoming it as another chance to invest there while others worry that it will cause risks to the country’s trading partners and its own economy. Two influential groups of foreign businesses in China issued very different reports on Thursday. They revealed a striking divide on whether international companies support China’s push to replace imports with a self-reliant emphasis on domestic production. China has been heavily subsidizing its manufacturers of semiconductors, commercial aircraft, electric cars…

Inquiry finds World Bank officials, including now-I.M.F. chief, pushed staff to inflate China data.

inquiry finds world bank officials including now i m f chief pushed staff to inflate china data

WASHINGTON — An investigation into manipulation of an annual World Bank report has found that Kristalina Georgieva, the bank’s former chief executive, who now leads the International Monetary Fund, directed staff to alter data to placate China. The findings of the investigation, which was conducted by the law firm WilmerHale at the request of the bank’s ethics committee, raised questions about the judgment of Ms. Georgieva during her time at the World Bank and underscored the pressure that the bank has been under to accommodate China, its third-largest shareholder after…

Why Evergrande’s Debt Problems Threaten China

why evergrandes debt problems threaten china

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…

How the U.S. Exit from Afghanistan Helps China

how the u s exit from afghanistan helps china

Beijing is now also positioned to hold greater influence over the country’s political landscape. Afghanistan’s history tells us that one group is rarely in control of the entire country, and given the Taliban’s lightning takeover, it’s reasonable to expect some civil strife. China — already the largest troop contributor to U.N. peacekeeping missions among the five permanent members of the United Nations Security Council — has also registered a peacekeeping standby force of 8,000 troops — a move that could make it one of the largest contributors overall. If a…

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