#China #Evergrande #Chinaregulatorycrackdown
Macrolens Chief Strategist & Managing Principal Brian McCarthy joins Yahoo Finance’s Alexis Christoforous to break down the impact on the global markets from China’s regulatory crackdown and Evergrande.
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Trump’s Tariffs Were Much More Damaging Than Thought by Stuart Anderson Forbes
fake news
Wait until china invades taiwan .
lol not found on their BS. that’s China for you
Biden Nominated a SOVIET COMMUNIST to be head regulator of U.S. Banks. That’s ALL YOU NEED TO KNOW about his ACTUALLLY being the Manchurian Candidate everyone feared back in the day!
Never trust or invest in the CCP in China and their corporations.
What these investors don’t understand is that it was China‘a intention to control over leveraged property developers with three line approach. Evergrande had broken all those three red lines and when China started restricting property buyers and still do from buying properties, cash flow disappeared and over leveraged company like Evergrande started having problems. I don’t think we will have Lehman brothers style collapse. Imagine getting a getting a big building getting demolished that’s what it is.
good points
Really nice 👌 😍💋 💝💖❤️
The western investors will lose big tome the Vancouver market will tumble now. No more equity.
Jack Ma was 100% correct China’s Banks are like pawn shops.
China will be like the DPRK soon under “Winnie the Pooh.” a surveillance state, who will travel to China now they will lose many tourists.
This is how Communism handles capitalism. This is what the Dems are pushing America towards with their policies. Do we really want to see 2008 by two orders of magnitudes here too? Please stop voting for Democrats.
All banks have their grubby hands in EVERGRANDES MESS!!!!!!!!!!!!!!!
It’s always funny watching Americans make claims about China being authoritarian and how the CCP controls everything. But once you zoom-in even half way it becomes clear China has very few rules compared to the US. So few in fact that it’s a problem. Financial rules, building codes, environmental management, stopping scammers, even traffic rules are seemingly lacking compared to the bureaucracy in the US.
I would agree with xi that house is not for speculating but it is for living.
Now xitlrr says the houses are 35x income overpriced 🤣 let’s go Brandon
@Thor 808 Can always count on someone to spew garbage here.
@John Chang Agreed, even Hu Jintao was a bigger criminal that Xi. Jiang makes Xi look like an angel
涨价去库存
Do some research on that. That’s what leads to what everything is today
Yeah should of said that 10 years ago.
Calls on YANG, the inverse ETF.
“…the accounting is not robust in China as we all know.” Like Waste Management, Enron, Worldcom, Tyco, Healthsouth, Freddie Mac, AIG, Lehman Brothers, Bernard L. Madoff, Satyam, etc.
Stop deflecting. U don’t see investors running from the US market like they are from the Chinese sham economy.
@Deanopha465 Deflecting? Laughable! China actually has a real economy with significant manufacturing. It makes low-cost and increasingly high-quality products (including high-tech these days) for the globe to help enhance the standard of living for world’s population – I dare say yourself included. There is a real estate bubble, and that is precisely the reason the Chinese government took decisive steps to address it (resulting in Evergrande’s collapse), courageously sucking up the short-term pain in the interest of long-term stability and fairness in housing. The U.S. on the other hand, has a bubble economy across the board, fueled by unsustainable debt, over financialization and feverish speculative activities.
You are right that the U.S. investors are not running away from the U.S. market, as they did around 2000, 2008, and 2020. Guess what, the Chinese investors are not running away from the Chinese market either. The Shanghai stock index is at its six-year high currently. The Chinese ADRs/VIEs are very depressed, and the investors there are U.S. based. Most have minimal understanding of China, and are easily influenced by smear campaigns, bogus claims and irresponsible comments such as yours.
Incidentally, note that the Chinese didn’t point to those years when the U.S. financial markets suffer great losses along with investor exodus, and label the U.S. a sham economy. Instead, in 2008/2009, China lent a helping hand to pull the U.S. back from the abyss (go do some research). What a contrast!
@Deanopha465Unlike US, you also don’t see tens of thousands of Chinese spending 2-5M renminbi just to send their one child to US schools.
@John Chang well not being Chinese or American who both talk a massive talk about economic competence yet perpetrate such disasters on the global market, I think i can ask what went wrong and why. After so many disasters like this in the past why wasn’t the Chinese government more responsive in preventing such a problem in the first place? If China is truly to be the world economy, why should it be trusted with that role if it makes the same mistakes the US government does? Why should we all as investors change the status quo if the alternative isn’t better? Other south Asian countries have emerging middle classes and manufacturing sectors likely to heavily compete in the manufacturing space China currently niches itself and some of them, like India, already occupy massive market share for things like pharmaceuticals and medical supplies which is more important globally. Also….technologically advanced Asian, North American, Australasian and European countries occupy market shares in most Western economies for high tech items and things like cars. All these countries have also proven to be much easier to deal with in terms of trade and are philosophically connected in terms of out look on free markets. Geopolitically speaking, they are also traditionally allies. So do tell us exactly what is so unique about China and what exactly it is bringing to the table apart from posturing at present and the same mistakes the Americans make. Which, let’s be frank, is not really giving us all a lot of confidence at present.
@Deanopha465 China due to its scale and interconnectedness with the world does elevate the global contagion risk, as does the U.S. With respect to significant contributing factors to the financial crises, in the U.S. in 2008 as an example, I think it was the intersection of banks and the politicians running amok as well as buyer irresponsible speculative behavior that directly contributed to the housing crisis, leading to the eventual collapse of the financial system. Presently, future risks abound in the U.S., with most asset classes in a bubble fueled by maniacal money-printing (resting tenuously if not illegitimately on its reserve currency status), menacing inflationary pressures, unsustainable debt load, and irreconcilable political chasms, etc. The capitalist class also controls and manipulates all, which paves the way for more social discontent and instability, with potentially dire implications including economic. On the other side of the globe, China is undergoing a highly volatile period because the government is finally taking steps to ensure that the capitalist interests do not take primacy – precisely the opposite direction from the U.S. Its central government is focused on narrowing the wealth gap, leveling the playing field, and producing collective benefits. While China possesses strong basic infrastructure, logistics networks and management systems, vertical supply chain capabilities and an educated workforce, etc, it is facing a dwindling and aging population. The former problem is actually a key driver behind the government’s current crackdown on education and real estate. While investors decry Beijing’s heavy-handed, “capricious” measures characteristic of an “authoritarian” state, causing them to lose money (TAL, GOTU, Evergrande as examples) and experience a threat of a mini “Lehman moment”, it is in reality a conscious and valiant government effort to combat two of what the Chinese call the “Three Mountains” – education, housing and health care. These are believed to be causing not just misery for the masses but are massively weighing on young couples’ decision to procreate. Market forces (i.e. human capitalistic tendencies / greed) caused the problems. The government stepped in to correct it (as opposed to letting it fester like some other countries). It is not surprising that the immediate aftermath is not pretty, and one could reasonably question whether there could have been more finesse in the execution. Nevertheless, the expectation is that a stronger and more stable future will ensue. It is almost inevitable that some mistakes will be made by the Chinese government (as would any government) along the path of (hopefully) continued progress, but it is taking a very different direction from the U.S., wrestling power away from the capitalists and financial elites, and intentionally pricking the bubbles before they get even bigger.
Concerning “what have you done for me lately”, China has lifted close to a billion people out of poverty / extreme poverty, albeit mostly in China. It provides low-cost products that you and I, and people the world over happily consume without paying prices that otherwise would be much higher, and helps to urbanize and modernize many of the world’s countries most in need. In Africa as an example, despite some of the challenges and the incessant negative spin that the West puts on China’s efforts there, the financial assistance, infrastructure build, job creation, economic support, etc and the tremendous resulting benefits are undeniable (though unacknowledged or grudgingly acknowledge with the obligatory negative undertone by the West). While doing this, unlike the U.S., China also does not impose its ideology or interfere with any country’s sovereign rights.
China has played a key role in making new technologies more accessible and affordable for developing countries. Breaking the West’s stranglehold over science and technology frees all the developing countries from the imposed shackles that impede progress. One recent example is the tunnel-boring machine, which was a monopoly business clinched by the Germans. There are many mountainous regions in China and tunnels are critical to efficient interstate commerce. The Germans demanded exorbitant prices and barred the Chinese client from even observing the maintenance procedures when servicing these German machines in China. China ended up developing their own. It now not only meets its own needs obviating the need to overpay for the foreign machines, it is able to export these Chinese-made machines to other countries forcing the Germans to compete, which lowers the price significantly for the other countries. The ultra-large shield tunneling machine for boring underwater tunnels across the Karnaphuli River in Bangladesh manufactured by Tianhe Mechanical Equipment is a prime example. In telecommunications, it is well-know that Huawei is more advanced with its 5G technology than the U.S., hence its hostile actions toward it. HVDC power transmission, robotics, and autonomous driving are all among areas where China is leading, many of which are being or will be exported to developing and developed countries alike.
In terms of drawing a line between countries that more philosophically align with “free markets”, I am not sure I know what that means. Do you mean free from government intervention? Free from regulatory interference? I also do not agree. Markets can never be truly free. If one entrusts the market to only the “invisible hand”, that hand will for sure end up working for the elite and capitalist class as well as their agents including politicians, and swipe all the chips across to the table to their corner in an increasingly rigged system. Just look at the U.S.! And that is with all the supposed “checks and balances” and various regulatory restrictions.
No one country is immune from financial risks – we have of course seen dramatic turbulence and downturns in PIIGS (no offense intended) and across the board in Southeast Asia, as well as one crisis after another in parts of Latin America. India, who together with China accounted for 50% of the world’s GDP for millennia until the early 1800’s has a huge role to play – though suffice to say that it has tremendous, sometimes seemingly almost insurmountable challenges. Latin America, like Australia, is heavily dependent on agriculture and mining, and will need a significant transition. It could also benefit from more proactive governments. Not any of the above is easy. But, while the U.S. and China both play a pivotal role in the global economy, I agree that other countries need to assume a key role in driving or supporting it as well. The age of one country being the global hegemon is soon to be over. Hopefully, every country / region will find its niche and play a constructive part. It is a global village, and we are in it together.
When China sneezes the whole world tremble.
@R.A. Sorry, I don’t understand Chinese.
@R.A. Also, just out of curiousity, is there no Chinese word for VPN?
That would be quite telling. 🙂
You wish
@insomnia mode……. Are we talking finance or Covid ?
@keegan773 The earliest reports of a coronavirus infection in animals occurred in the late 1920s, when an acute respiratory infection of domesticated chickens emerged in North America. Coronavirus was discovered before your grandparents were born. Could hv existed thousands of years if not millions.
When Trump was president, all things were called “Trump” – regardless of how far removed a government entity was from the executive branch, – with Biden, Biden is called “the Biden administration.”
In some ways China is more responsible than the U.S., the U.S. is only good at Blowing Hot Air Bubbles.
China’s Real Estate Development industry is One Big Ponzi Scheme. Every Developer is over valued and under leveraged. There had to be an End. Besides, in China you have Pseudo Real Estate, a Leasehold Estate which is Personal Estate and not Real Estate that are used as a Speculation and not a residency, that are way out of proportion to the income of most. And those Party members who can afford because they absconded public funds one way or another, already own several apartments for speculative reasons and don’t need any more. CCP might be focusing on cleaning up these money. Sure, the media shows few people who are losing their life savings. But these people are only a drop in the bucket.
Kick China out of WTO. Stop trading with ALL Communist Nations. Let them play by themselves only.
continuing with my SQQQ trade now into day three.
good lad, but it will bounche back up for the next 1-3 weeks after a few days of more red
US is heavily relying on China for their prosperity. The people in China are expendable and has ability to endures hardship. American will lose the war if US Congress continue to divide and behave like children
The fools will sell, sell, sell their stocks.
Idiots will not sell and go down with the sinking ship
China is the enemy.
China will collapse if they let real estate to burst. They will manage them and not burst them. Look for easing of rates and pumping liquidity in the system.
Don’t forget that chinese investors also bought a lot of real estate here in the US
@Blindspot Spotter Maybe western creditors could arrange a swap. Effectively sell their Evergrande debt for debt secured by American real estate. I would not expect the western creditors to manage that without “taking a haircut.”
Or more likely…. maybe western creditors will be handed some draconian deal by the Communist Party of China (CPC). One scenario: Evergrande is broken up and creditors are handed “equity” in lieu of their loans. They might each receive a package of unfinished skyscrapers and down payments from the associated condo buyers. If western creditors want their money back, they will have to funnel in loads more money to finish the projects. And presto, China has exported its problem.
Good, Hopefully they will sell and U.S house prices will drop and be cheaper for everyone.
You know prices going down isn’t a bad thing. It means housing becomes more affordable for people that don’t have a house yet. But yes if you just bought a house it’s not good, tho who would ever buy a house now in this current market.
US real estate is prime real estate for Chinese investors, it’s the last asset they’re gonna sell
@Jin If they have problem with liquidity… then they need to sell anything and everything…
If this were to happen in US, the rich investors would lobby the FED and government so that they don’t lose anything. As we all know in US, profits are private, losses are social, so that rich can get richer, wealth gap at its highest. Richest 400 families pay 8% tax, janitors pay 24%
I agree with CHINA. They are cleaning house and they take a heavy hand at it. The kid gloves are off. We in the US are hypocrites. We reward those who lie, cheat and steal. Look at WALL STREET bail outs from Bush era, Obama era, Trump era and now Biden.
“Not robust” accounting. What gives if they have western auditors?
Blame America…yeah that will solve it.
@Andy .P wasnt murica that funded the Wuhan lab that released the virus… that’s why your half baked Intel public report was “inconclusive”
@Gebert Fyter interpret it like this: no matter what you see, or read, on the internet – the US will always indirectly dictate most of the economic affairs of China. With technology, China will always be behind the West – always copying technology, but producing a much poorer, cheaper product. China couldn’t even copy the SU-33 after buying it, they ended up with the J-15 “Flopping Fish” 😂
@GoldenMagnolia Is staying in the ancient past your way of struggling to stay young and relevant?
Seriously… F the SEC…?Question??… can we, as a community please start humiliating the FBI for sitting on their hands while a criminal enterprise is robbing EVERONE!!!
The good news China slow down will help with building materials & natural resources that are needed to build in other countries. The amount of waste in lumber and other resources during the fake cities being built in China artificially raised Global prices. Thanks to China your 350K home now cost 600k+.
this life is temporary a beautiful news is that we have salvation believing in Jesuchrist
read Romans 10: 9 and 10 believe by faith in your heart and call on his name only he save
read st John 14 : 6 and st Jhon 3 : 15 to 18
The Pooh’s taking a ride on the Titanic. Even though Trump lost the battle it looks like he won the war.
So much winning we see.
@Greg Person where are you from? (Greg doesn’t sound Chinese).
@howard chang China is coming apart at the seams a little pressure from Trump revealed China as a house of cards. Biden and his Rich buddies (Chinese investors) have been doing their best to help them but all the king’s horses and all the King’s men couldn’t put Humpty Dumpty back together again.
@Mike Smith I will never understand the level of animosity between democrats and republicans. As far as I can see Biden is just like Trump, only sneakier.
@howard chang what does animosity have to do with it? I didn’t vote for either one.
Xi does not know neither !!!! No clue at all
In few years or so people will definitely be kicking themselves in regret for missing the opportunity to buy and invest in cryptocurrency .. ..
How so, prices are down from last year
@CK Tanui it’s probably a bot, but for some reason the answer chain wasn’t triggered
Nothing new. Eventually these rich countries and corporations will emerge unscathed. The poor emerging economies will always bear the brunt as usual.
china: we’re going to release a virus to collapse the global economy and get ahead, teee hee hee
karma: neh
Can you imagine what it means to keep under control the greed of a population 5 times larger than US?
We saw that this is not possible in the US; it is just impossible.
That’s the difference between China and USA. Simplest example is the way two countries’ handling the Covid crisis. That comprehension, social structure and life style will bring down the Empire down sooner than anticipated eventually.
China doesn’t have bankruptcy laws like we do in the US. They will only give money owed to their own people and US banks and investors get shafted. To put it simply we just built China free skyscrapers.
Because china only employ ccp members to high positions, they only care loyalty not competence.
And who really cares what happen to china after the covid cover up?
I hope china gets bankrupt or maybe they just can all move out to Mars.
Decoupling must be the next buzz word. An ending to ponder. If every democratic country in the world decouples together unless governments behave responsibly and respect rules and rights. No country can force another country to trade with them if they won’t trade fairly. Perhaps Decoupling is the best way forward for all. At least that way there will be no need to go to world war .
2months ago, none of you know about evergrande. Yet in China, especially in financial sector, everybody know evergrande will not end up nice since 2018.
u.s. media is corrupt right now.
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Housing bubble is popping.
This is the beginning of the end of the CCP, bye bye , adios , ciao .
The CCP had planned (for a long time now) to transition to domestic economy.
Looks like they are making good on that plan.
USA knows “services economy” is going to provide China with a “GDP rocket” Xi is going to crew ate more social housing even in Hong Kong and Evergrande is only the start of correcting property market!. Real challenge is those who plan coup to replace Xi needs to notice Xi how on Mao anniversary Xi wore a “Mao suit” message to Billionaires ” You want to restart Revolution” peasant army is already mobilised led by Army who hate West and have a stock of weapons “!. China is focused and leaders remember Mao Peasant army lost 24 million people on March to overthrow Emperor – do not apply Western standards to China – isolate them at your peril!.
This will hurt the bond market for decades. You said it perfectly, houses are for living.
Investment in a Communist Country was never a good idea. burn baby burn…
cry wumaos. cry
Bidens false teeth are creepy
It is said the Evergrande is not alone. There are many real estate developers in China that arr burdened with huge debts. Good luck!
Tip of the iceberg
@Nguyen Jung tip
Regulatory crackdown?
You mean the cover story for a completely mismanaged economy based on lies and corruption?
Right. Thanks, Yahoo News.
Pog 👀👍
Ahhhhh, yessss….greed, the gift that keeps on giving (taking).
Anyone investing in China is a fool
Chinese will eat sparrows again soon.
I could say but Americans will eat swans, beavers, and squirrels again. But, why race to the bottom!
@John Chang Americans will eat huge beef steaks and drive big V8 cars, like always .
@Rachel Green “always” suggests perhaps a lesson in the history of the American diet, particularly during hard times like the Great Depression. And please don’t get me started on factory farming. If the beef steak-eating American population can open their eyes to all the atrocious abuse of these sentient animals, some may in fact opt for sparrows, if that was the only alternative. Luckily, there is tofu!
i wouldn’t be surprised if the Chinese people lose their generational wealth because of their lust for real estate.
80% of local goverment money comes from land selling. Do you know whats gonna happens when no new land is sold? Total Collapse. Thank you thats all from my side. Have a nice day
Sometimes it still amazes me greatly how I went from an average lifestyle to earning over $120,000 per month from a $300,000 startup capital. I have learned a lot these past few months to doubt that opportunities abound in the financial markets. only thing is to know where to look. IRA’s a good but for someone who wants sth much more aggressive, they are a tad too slow imo. my advise to any investor is to not buy into the bullshit of an imminent market crash since it’s all bogus hype. the market will exist no matter what happens
@Irene Lambert I looked Josephine Laporte up right now and am impressed with her qualifications. but am a bit curios if the setup too technical. i’ve had some frustrating experiences while setting up some mam programs myself and what are her fees for this? and the average growth of your account?
@Earle J. Glover She charges me 10% of the profits on my portfolio which is fair enough considering the perfomance and consistency of my account. took me a few minutes to set up since you don’t even need to be a tech savvy person. my portfolio grows roughly by 15% to 25% on a monthly basis. it’s mindblowing but then what isn’t possible anymore. Useless pixelated images sell for millions these days because they are tagged “nft’s”. Some of these brokers know where the money is and how to get it
@Irene Lambert well i share your views regard nfts also. i think the world is going crazy over this whole market. i see it as a big case of ‘the greater fool’. i wrote Josephine just now. i hope her services are available outside the US also. thanks for the info
@Jose F. Rodriquez haha. seems you folks do not like nfts. i never fully understood that market also but i have a few investments there. have also made a couple thousand bucks but it seems things are a little slow now. i go wherever the money is tho. i left a message for Josephine a few minutes ago and waiting for a reply. tnx
@Jason M. Fahy goodluck
Prosecute CEO and Board?.
If you criminal minds report that there will be no contagion, may your stalks crash now.
The only reason there was such a massive bubble in Chinese real estate was because of Communist policies and crack downs, people in China had no where else to invest their money. Now all were seeing is more communist policies and crack downs. I wouldn’t invest a dime in China, it’s like investing in the Soviet Union at this point. Capitalism is OVER in China, it’s just full on communism from here on out, and we all know how well communist economies have done historically.
US banksters are fuelling this energy bubble, attacking Europe and the rest of the world…. ,,
“The accounting is not robust in china like we all know”. Most moronic remark. What about the accounting of 2008 that crushed the global economy? What about Enron accounting?
Yeah, those were called illegal., that’s just SOP in China.
Anyone who invested in China will deserve the fall out
There were 64 million empty apartments in China before the Evergrande debacle probably 3 years ago, way before the CCP Virus?
You can’t control the market fluctuations, the economy or the political environment. instead, you should base your investing decisions on time tested investment principles, such as diversifying your portfolio, owning quality investments and maintaining long term perspective.
Focus on what you can control, and ignore the market manipulations.
@Bruno Hart people should know that investing or trading is not a get rich quick scheme, if you can’t be patient then the market is not for you in anyway.
@Nathaniel Mendy patience is key in this market and if you don’t have that i pity you lol. From a personal experience due to being an aggressive investor i lost heavily because i was either FUD OR FOMO until a friend of my opened my eyes to the importance of a coach. having a good guidance is so underrated .
@Micheal Joseph I have a keen interest in day trading and does this advisor/manager offer long term service for retirement?
@Todd Sotelo Jessica Meador Jones is the name of the F.A, i cant answer those questions here but google her name to know more about her services.
If there are so many expensive bonds issued by evergrande not listed as debt, what is the real debt? Obviously far higher than $300 billion.
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