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#VantageOnFirstpost Beijing Steps In: Vanke's Bailout Amid China's Real Estate Meltdown | Vantage with Palki Sharma In a critical move to avert a wider real estate market collapse, Beijing has intervened to support Vanke, one of China's largest property developers, now teetering on the edge of failure. This intervention marks a departure from China's previous stance during the defaults of giants like Evergrande and Country Garden, where direct aid was withheld. Following a downgrade to 'junk' status by Moody’s, Chinese banks are now rallying to provide Vanke with a syndicated loan of up to 80 billion yuan ($11.2 billion), aiming to secure the firm's immediate financial obligations. This effort by Beijing and 12 major banks, including the top six state-owned lenders, underscores the government's intensified efforts to restore confidence in the faltering real estate industry and prevent another major developer's downfall. --- China | Vanke | Credit Rating | Junk | Moody's | Firstpost | World News | Vantage | Palki Sharma #china #biggest #propertydeveloper #creditrating #junk #moodys #citizenshipamendmentact #caa #india #caaindia #controversy #minorities #opposition #firstpost #vantageonfirstpost #palkisharma #worldnews

The property crisis in China has hit another inflection point where massive fraud is now unfolding. This reminds me unfortunately of the S&L crisis, Enron, and the Great Recession of 2008/09. If Evergrande is an indicator this may be near the top of the list with some of the greatest debacles that will harm way too many investors, real estate professionals and financial institutions. I imagine all the global law firms are lining up along with all the consulting firms. What will the fallout be beyond the property sector? Stay tuned….

China: property rescue package https://ow.ly/r5Ra50QNGR2 The question of the risks posed to the capital markets by the Chinese property sector has been raised time and again, putting pressure on the local stock market. The central government has now decided on a comprehensive support package. In addition, a series of important data is due in the coming week - and not just from China. But read for yourself.

The Karnaphuli Tunnel faces a daily loss of 26 lac BDT, raising concerns about its financial sustainability amid China's loan repayment. To Watch Full Video: https://lnkd.in/gA7A2Z6C

📢 China’s New Financial Package: Focused on Debt and Real Estate China just released a $1.4 trillion package, but this time, it’s not about immediate growth. The focus is on helping local governments manage their debt and stabilizing the struggling real estate market. Finance Minister Lan Foan hinted that more support is on the way, with analysts noting that Beijing might be holding back bigger moves until Trump takes office in January. #China #realestate #stockmarket #macro

How do you solve a problem like China's property crisis? In our latest Live interview with ausbiz's delightful Juliette Saly, Navigate Commodities discusses the pressures facing China's faltering property sector The culmination of stringent zero-COVID policies and opportunistic property developers exercising moral hazard has led to, in some cases, decade-long incomplete property developments As a result, Chinese consumer confidence has been pummelled to the extent that there's now an inherent distrust in local property developers to faithfully deliver on construction projects This is excruciatingly evident in monthly, quarterly, and annual sales figures for property developers, which have plunged as much as 50-70% over the past couple of years So, how do you solve fundamental distrust in such a counterparty? One option: 🏦 Nationalization Quite clearly, borrowing cheap state funds, issuing equity and/or raising funds from debt markets has not & is not resolving the industry's reputational crises This now looks & feels like one of the few viable options This situation triggers a stark reminder of the Global Financial Crisis (GFC), when distrust of local financial institutions resulted in a "run on the banks" Distrust of local banks resulted in consumers rushing en masse to withdraw all their savings deposits, accelerating/deepening liquidity problems What other options & solutions might resolve this existential crisis? 👇 Linked to full recorded Live interview below 👇 #china #property #realestate #construction #steel #ironore

WHAT HAPPENED: China Evergrande, once a real estate colossus, has been ordered by a Hong Kong court to liquidate. The company's failure to manage its staggering $300 billion debt signals deep trouble within the real estate sector and the Chinese economy at large. WHY IT MATTERS: Evergrande's downfall is a critical indicator of the systemic risks lurking in China's real estate market and its potential spillover effects on global financial stability. Investors, take note: the dominoes might just be starting to fall.

China is confronting the difficult challenge of countering the profound growth and financial effects of a sustained real estate slowdown, Kenneth Rogoff writes in F&D magazine. Find out more ➡️ https://lnkd.in/eiWvayF9

From the desk of your resident expert... The headlines globally about real estate are like a one-armed bandit: First orange - the country Second orange - residential, commercial or landlord Third orange - the percentage it has gone down On Friday it was Germany-residential-8%. #China #StandardChartered #HSBC #HongKong #ChinaBohaiBank #HangSengBank #FinancialStability #realestate #property #commercialproperty #resdientialproperty #landlord #buytolet Ministry of Finance of the People's Republic of China Standard Chartered HSBC Hong Kong Monetary Authority (HKMA) China Bohai Bank Hang Seng Bank Bank of Communications Co.,Ltd. Standard & Poors Ratings Services Moody's Ratings Fitch Ratings Morningstar DBRS

Hong Kong property companies haven't suffered anywhere near the problems that mainland China peers have, but it hasn't been smooth sailing in Hong Kong either. US dollar bonds from the companies remain lackluster. https://lnkd.in/gM4WKtTT #hongkong #bonds #china #realestate #capitalmarkets