China’s Evergrande Group – the world’s most indebted real estate developer – has offered to pay back some of its investors with some of its properties.
The company has been struggling to raise funds to pay debts estimated at $300bn.
If it fails it could affect China’s economy – the world’s second-largest – but China pumped more cash into its banking system on Friday to avert a liquidity squeeze.
Al Jazeera’s Laura Burdon-Manley reports.
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#AlJazeeraEnglish #China #Evergrande
They were buying those apartments to speculate on price. So now they pay the price.
No.
You don’t know that. They may very well want to live in it.
Karma is hitting back to China víru$
“It’s like a snowball effect”
No that’s what we call a Ponzi Scheme
No its not. In ponzi scheme they would not even try to build anything.
@Marko Liimatainen here the buyers will not get anything and loss for creditors
i wanted to hear someone say for what it is ….a ponzi scheme
Is MicroVision a ponzi scheme??
Chinese like to gamble.
That is U.s propoganda never mind China will succeed. From Somalia
You better get to Somalia to succeed too
You should care about Somalia otherwise china will use Somalia for military base
@jee aspirant when U.s fake democrazy will get solve soomali problem
@Xarako Comedy you should solve on your own by eliminating your pirates
@jee aspirant you thanks that is my idea please
CCP stated playing game is unhealthy, girly Chinese man is bad, so they should not bailout EVERGRANDE. Wait they did bailout Arbang.
Yet again the poor having to bail out the greedy rich. When are we going to start holding these maggots accountable.
It’s China. What do you expect.
@Gabrielle Trinidad If we already know that the Chinese government is compensating them for their losses, why are they organizing protests and demonstrations?
@Henry D Ginn Dude how much are you getting paid per comment? Also which VPN are you using to break through the firewall?
@SBha30 <— another poor namaste minions. Aren’t you not worry that everyone looks down on India. When will you people be able to say proudly “i’m from India” ? Every time I meet an indian abroad when asked where r they from, the will either mention some western country with their thick indian accent or they will mumble in low tone saying india avoiding eye contacts. 🤣🤣🤣 confidence nahi
@Gabrielle Trinidad most youtube viewers are stupid and brainwashed. but it is not our respinsibilty to educate them. the history will abandon them.
300 billion, I wonder where the money went
CCP thieves stole all these people’s money n had their children buy houses in America . CCP thieves
Have to feel sorry for the little guy.
The Chinese billionaires are just laughing. The government will bail them out. This is what they call business. Most of their money is outside of China already.
Real estate version of Lehman Brothers. Greedy and reckless executives are always looking for government bailout. So sad that these business executives always get away with it no matter what country it is in. Always the same, government bailouts
From Covid to Evergrande, how’s Kung-Flu Xi doing? Terrible and worthy of C-Punishment for crimes against humanity.
@Travel Crawl how about the 600 thousands dead American citizens?
@Travel Crawl try harder jealous Murican 😂
well at least those chinese actually executed/ death punishment or life imprisonment for those who did wrongdoing on this debt crisis for example the peer 2 peer chinese banking back several years ago..
unlike the usa, they just found 1 or 2 executives for a scapegoat during 2008 and its just easy sentences! no life imprisonment!
come the fak on!
It’s the sign of declining Chinese economy like Lehman brothers shock of 2008 in America.
@Fu YouTubefrom what i know, the company kept borrowing money like crazy. Company grows very fast with projects built on borrowed money.
Company keeps borrowing money using the unfinished project as Collateral.
Gov tells them to slow down borrowing because its getting too risky.
They cant borrow money anymore, suddenly they have no money to pay interests and bonds to investors.
Oh and they no money to complete their projects as well. People who made down payment for apartments are screwed.
Another..Asian USA Green Card Holder having every Words written against china
🤔DiD..CIA gave Award
No. Chinese economy doesn’t solely depends on Property Market.
@Simon Whittaker the banks are falling next, after the housing companies.
Avalanche, Solana yes yes, keep buying the dips !!
God bless the Chinese culture had this happen in America there would be looting and burning down of businesses related to this ever grand
Sometimes war is the only thing men listen to. It’s sad us Americans have to revolt to such option, goes to show at what disadvantage were at.
How can a company going through bankruptcy still payback the money? Common sense it’s going under and no longer have the means to pay.
The court orders all payments to lenders & investors.
And the company sees what it can sell help pay back the payment to certain investors.
That’s my understanding is.
What on contractors going to do with a devalued property that is poorly built, you can’t pay your workers with garbage.
chinas probably like you know what? we’re sick of this white racism so f em let the market tank 😛
14 billion into the market? It might just disappear in a second… And the truth is china cannot printing money like the US, it will directly destroy the value of RMB.
The 14 billion will no doubt be paid to friends of the CCP to compensate for their losses.
I am in shenzhen, still a big party over here, its mid autumn festival, people spending and spending, nothing big with this Evergrande.
Some people will lose yes because they speculated, but most have too much money over here. So this is a BUY opportunity !!
Lol no if a stock drops and it’s world wide news, it’s a big NO xD
@GuysImTristan then you dont buy this dippie, what you want !
@Al S lol yeah exactly!
China is a giant paper economy
Which conveniently have the biggest economic prospects and opportunity as well as having the largest foreign reserves in the world. Lol nice one
@Bal Rock blah blah
@Deez Nutz Money talks. scammer says blah blah
One thing is clear in here, 0 police vs public clash. In US pepper spray would of been used already
Even if there was you wouldn’t hear about it 😂😂
China’s bubble is bursting. You love to see it.
The options are good, it is to provide the certainty of completion, than a bail out, these bail outs are not good, the property completion is good, government subsidies both from private and public sectors are orderly when it comes to subsidies, than a bail out. SMEs General practices, practitioners all fields of studies are efficient, orderly with one another’s standards practices respectively Property developers, Civil Engineers, Geodetic, Chemical, Electrical, Realtors, Land and Building Administrators are well coordinated with one another respectively for the standards of realization and reconciliation.
Decoupling from China is needed. USA greed caused 2008 financial crisis. Next china debt policy will cause havoc in many countries. Already Sri Lanka, pakistan and many more finding hard to pay back interest.
Lei’s Real Talk Channel tells the truth on what is happening in China and Evergrande
more ghost cities
Call me a traditionalist but I would only buy a property that actually, erm, exists.
Most new properties are sold before they are build, at least in countries/areas where real estate is booming or expensive. Of cuorse you don’t pay the whole price in advance.
These are frightful buildings, unfinished and ugly!
How old are u? 10?
What goes arround comes around. Beginning of the end of so called China’s economic miracle.
No Britan first
look what happens when you crash your own stock market
a domino effect
It’s a ponzi type scheme and they are responsible for fraud.
Never buy an unfinished property in Asia.
Reminds me of Japan bubble burst.
I dont think it will be a problem since they’ve just created a law where rich company have to give back to the society more. Plus they would get some money from the useless infrastructure they spend trillions if every year
The problem is that they don’t have money.
The coming collapse
14B is chump change, financial experts are out of depth if they think bandaid would be enough for a gun wound. Evergrande owes 300B after this so many small banks would owe more of this we are looking at a much bigger crash probably world wide if CCP doesn’t bails out this form.
Evergrande is only $300B in debt…. Lehman Brother was $600B, ten years ago.
Concrete companies made money !!
And that may be the key.
Did they think China is the Fed??? Not a chance
Which u.s. property Management company is the same boat as Evergrande.🤔🤔
Made in China 🇨🇳 won’t last anyways 🤣
China is NOT like the US, controlled by billionaires and their cronies. These people should just suck it up for their own mistakes!
Who didn’t see this coming come on be real I saw this coming with the weird ghost City YouTube videos that came out what five seven years ago
Greed and market manipulations systemic corruption among the elites in China that includes the CC P they don’t care about their own citizens it’s tragic it’s wickedness
WION was the first channel to report on this. No wonder that channel is gaining subscribers everyday. Good work WION👍 show these loser western news media who is obsessed with US centric news only
Haha.. Ur wrong.. The situation in media already 4 weeks ago..DW report about 24hrs..others also.. Well at last it was a news.. Why so calculative who first.. The point was the issues, not which one report it first..shame u
This is going to wreck the global economy too. Evergrande is the first domino.
How will it affect other countries though? China seems to have dealt with it already?
@Jurgen A China does not have it “dealt with”. This is still ongoing. Chinese citizens and institutions have many investments all over the globe. In fact many foreign nationals own real estate in the US because they see it as a safe place to store wealth. The Chinese will pull their investments to gain liquidity and this will be felt globally.
Also, almost all US manufacturing is in China now, China is Australia’s biggest trading partner, and so this will have a big impact on many supply chains.
@Johann Let’s see how this will develop. Our current system is broken already so it was only a matter of time before something would happen. It’s true tho, this is just a start.
@Jurgen A as a country that rely on trade and tourism from china, we might be in for a shock this season.
Soo war will start soon i guess
Despite all the economic crisis this is the right time to start up an investment
Really y’all know him?, I even thought I’m the only one he has helped walk through the fears and falls of trading
Seeing alot of success stories, he must be honest and trustworthy for people to talk this good about him.
Do you imbeciles actually believe this or are paid trolls.
I wonder how many people felt for the this type of scams
This all staged by the government to shut down “Western” practices. Their goal is to restart a Chinese stock market for government businesses. No more big multi billion companies.
China will collapsed.
problem to inside China since the government has the absolute power on propaganda and guns. But more and more stiff and stagnant market in upcoming Xi era is definitely not good investment environment which some financiers don’t dare or pretend to expect.
Only in China does investors get a fair deal even in debt. Compare with what happened to housing property in US, when they crashed. The state took the side of the cheats.
Not really. In China the buyer gets a promise of a yet to be built home but must pay the bulk of the cost before it is built. The buyer carries almost all the risk.
The result of greed. The stupidity of mankind. You made a bet and lost, get over it.
It is nothing what stupid Trump and AIPAC did to the US economy
When you have a communist party running the country this is what happens you cant kerpbuilding without inward investment and the ccp have stopped all this all the ccp leaders will still pocket big money get rid xi and get Jack ma bringing investment in otherwise this will just be the start many company’s already gone bust
And the US market is also affected by this because US banks and hedge funds etc. are heavily invested in the Chinese market. Brace yourself, this might be the thing that causes the new recession.
Situation is not as bad.
Ever-debt wanted to be like the black C(r)ock firm.. bankrupt or not, in one way or another these companies are destroying the housing market for everyone everywhere.
A house is built with wisdom,
and prudence strengthens it.
Even if those tower blocks were finished, who could live in such oppressive, prison-like monstrosities? Yecchh!
Nothing new, the most affected industry by coronavirus
Fake money printed to prop up the Fake money that’s failing…All…Over…The…World
When is al jazeera planning to jihad
I bought an apartment in my country from a taiwanese company in 2019. if it’s all go well, I’ll get my house late next year. We all thought we get good deal from unfinished projects, but it’s a risk. We don’t know if they use our money to pay for their debt. This could be a good lesson to learn, if it’s possible buy finished projects.
A temporary delay in payment due to the pandemic. China is a very rich country and the government will provide emergency cash payment. $300 billion is very manageable.
Let’s not forget all that slave labour. They can take a way bigger financial hit than that.
everytime they say theres nothing to worry about, thats when you worry
How where they allowed to get that far in debt.was there no continuous auditing
THE SOLUTION … … … BITCOIN !
it’s not 300 billion in debt more like 1.5 trillion .they are hiding real figures 🤔
You are correct. The 300 Billion is just a figure that someone made up that nobody can verify.
GREED
Kung-Flu Xi will make a bunch of people disappear soon. The Xina way of doing business and creating a just society. Sickening.
Is Evergrande gonna be like Covid scenario?! Started from China then finally ends up taking global financial system down?! 🤔🔥
Maybe not this round but yes, one or another Chinese sectors will fully collapse and the global economy will hemorrhage.
Yeah maybe like that but isn’t that virus lab funded by Our Beloved USA
@G.O.A.T I c 🤔
@G.O.A.T just like how American asset management firms fund all these real estate giants in China, so I would say it’s pretty similar
Tofu dreg housing compensation
India has similar issues. Modi is getting to the bottom of this cheating.
Every building group you see in this video is worth anywhere between 1 to 5 billion, and evergrande has hundreds of projects throughout the country.
Well all that money on opium and heroin is finally paying Taliban…
No one wants those worthless properties LMAO
Disaster morgage 😄😄
NOthing bad will happen. It’s all fear mongering.
*No need to fight with China. China collapsing from within. Evergrande- the Lehman of China. Bad loans everywhere. China has resistance from Phillipine, Loas, Indonesia, Balochistan, Zambia…..*
Its more like a teillion.
Another f… king corrupted cheater developer cheated all the poor people money
Boycott Chinese goods services and applications
Citreon raised this issue 10 years back.
Don’t forget about chinas ghost cities and there fake economic growth numbers
Dont worry guys the money is safe at Swiss alps
they should have invested in Bitcoin!
what a sight to behold.
China 👎👎👎👎👎👎👎👎👎👎
In a county like Turkey you can NOT advertise for development that is not 100% complete and ready to move in, we all have brine let’s start using , no sympathy for greedy people
Dear CCP
If u r reading this
Jokes on u suckers😂🤣😂🤣😂
Because the company is too greedy, now all the tax payers will have to chip in. The PCC is also to be blamed as their incompetence is surreal.
Evergrande is running dirty tactics. Offering other properties that has no or very little value. Big companies jn china is partially owned by the ccp. And you wouldn’t be surprised that yhe ccp will screw their own people for money!!!
guess that GREED shares the same consequences disregards what politics platform the environment adopts.