China’s second largest real estate developer Evergrande has been officially declared in default by credit agencies.
The ramifications of this will be felt by homebuyers and millions who rely on the sector for employment.
Al Jazeera’s @Katrina Yu reports from Suzhou, China.
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#AlJazeeraEnglish #China #Evergrande
*I invite everyone to listen to the Holy QURAN* .❤☀❤
No one cares. You listen to it. We know where to find it if we change our minds.
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China’s economy is basically just a giant ponzi scheme.
unfortunately there where government To Save the day
China produces a ton of real goods and has a large domestic consumption market so not all of it is fake. But about one third of the economy is a Ponzi scheme
Clever government will not bail out greedy corporation, otherwise other will do it again in the future
The problem is it will lead to a 1929 type crash of the Chinese economy, likely taking much of the world’s economy drastically.
These Chinese corporations are partially State Own. Just like Xi Jinping pointed out in 2012 to his rival, most “private” companies in China have CCP’s relatives taking key positions and direction of the companies.
That’s why you can’t do anything in China without the approval of CCP, furthermore by laws that any “private” companies with more than 50 employees require to have CCP’s cells.
Effectively, most profits from these “private” companies went to local government and CCP’s relatives, that’s why they are often refer to China’s State Own with EXTRA step.
@Unconventional Ideas bailing them out will do the exact same since they will have to buy back trillions of debt, destroying the yuan
What a mess!
Bruh they are LITERALLY communist. The government and the corporations are the same thing. Who’s curroption do you think lead to this mess?
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China is rich nation on earth
You mean china is rich in credit/loans….
@Peoples Republic of Ninj yes
@antonius samuelson ok
@Farzana Patel 🇺🇸 we know that
@gustavo garcia no
Abangnya meikarta.
mosok sih?? kali ini PKC pusing sepuluh keliling…
The model is wrong. Build build build, sell sell sell. In the end, no square-inch of nature will be left to thrive. Human activity everywhere. End the love of money to save the planet
Evergrande increased total wealth of China
Ha Ha!!!!
Katrina Yu maybe lived in China for a long time, but normal Chinese can identify her from her make-up, it’s never a popular make-up for any real Chinese girl, quite “American style”…
If you knew anything about how the human face appears on camera you wouldn’t make such an ignorant comment.
Who cares!.. don’t worry about the reporters make up … people are losing savings these developers are causing global issues !
@Colin Haha. What’s your point bro? Sounds like you are an expert on how billions of Chinese women should look like. Wtf. !!
@lostinmuzak must know more than you did
Evergrande, Kaisa, Shimao, Fantasia, don’t let the good news stop coming
nothing about this comes out as “GOOD”, PEOPLE Lost jobs during all the process. Leave Hard-working Chinese people alone, plz.
@袁次郎
No worry, the party will take care of them
it is good news actually, those companies had to fail to have a stable economy, GDP growth may be reduced 0.5% but you’ll have stable economy.
Whether China grows art 7.5 or 8% per year does not matter, stability matters
If you bring all the farmers to the building construction work who will do agriculture from where will you get rice wheat barley. Tvtchennai muthu
@ScienceIsReligion Their reports/documentaries are unbiased, high quality professional work. I subscribed to both DW News and DW Documentaries, I’m learning a lot from watching their videos regularly.
@Christiane Vanherck yes😊 but sometimes biased if there is national interest for them or world interest. Else Totally unbiased.✌
@ScienceIsReligion Al Jazeera also does excellent work. In case you have not seen it, if you’re from India and into agriculture, I was impressed with this AJ documentary and recommend watching it. Title: Why are so many Indian sugarcane cutters removing their wombs? | 101 East (Al Jazeera) Description: India is the world’s largest sugar producer and, each year, one million workers harvest the sugarcane fields.
Families travel far from home to live in rough camps by the fields, where they work long days under the hot sun, with only one day off a month. But a strange phenomenon is appearing among the female workers; they complain of severe abdominal pains and acute tiredness. This has led to one in every three having her womb removed. 101 East investigates why these women are being persuaded to have invasive surgery and what is behind their pain.
@Christiane Vanherck no, Al Jazeera is state funded. Many will be benefiting for them and islam based thing. So I wont check much.
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Man…..China just can’t get a break. All kindz of crisis all kindz…..😅
This is not an acual crisis, this is just a millionaire luxury not a crisis.
China’s stock economy mostly hold by evergrande. If evergrande fall, then china lost majority of it.
This effects the entire Chinese economy since a third of it is based on real estate. You should learn some macroeconomics, something like this effects all sectors. Besides. There’s about a hundred million unfinished units from companies at risk of collapse – nearly all owned by Chinese people who will be forced to service debt regardless of how finished these homes become.
Yes, no need to pay the suppliers, no need to deliver the customer, they all billionaires after all
China is going to the pan fast the country only makes rubbish and viruses lol
Westerners always jealous of chinese success. they make fake news
People who are not stupid know that China always the best country, Rising above own score. No other nation can be matched. You must respect and obey the most glorious nation China or else there will be severe consequences. I am so proud to be a Chinese. We Chinese are the smartest, strongest and greatest race
Lol
Feeling bad for those who invested their savings in these black holes
Let the carpet baggers of the western devils they ll buy it cheap and improve it then sell it back to Chinese at a profit like they did to the Japanese
The west are pros at business and have been doing for centuries unlike the Asian countries .
If Al Jazeera despite being a CCP franchise dares to say that Evergrande will default, than . Has CCP stopped finacing Al spreading misinformation?
Any evidence to prove your claims and allegations? I doubt it!
@Christiane Vanherck Answer (proof) my friend is blowin’ in the wind…answer is blowin’ in the wind….
@Pankaj Kalita We don’t want your negativity and lies, because they are polluting the wind.
What goes up – must come down.
What goes up fast – must come down faster.
Grow slow – keep growing forevermore.
– probably a Chinese proverb. 👏
self destruct, get jokowi to eyeball on this
this is going to end bad isn’t it?
@袁次郎 are you from prc or roc?
@Rahul N of course PRC, who knows how many more months ROC will suvive from now on 🤭
@袁次郎 roc will be there till prc collapses as pr china never tried a military invasion after its Vietnam war 😪 ccp is just talk the talk
@Rahul N 😁 u gays talking about the collpase of China over decades. just get over it plz
@袁次郎its just like how you guys talk about reunification with roc for decades without getting over it😭🤣
well, at least AJ acknowledges this is a lesson the central government is teaching these greedy developer,
another student in this lesson is actually the local government, Beijing has for years reprimanding local governments for reckless investments, and now the provincial governments are cleaning up the mess they made themselves.
Maybe the funding for these projects have bean/ stolen/ of no insurance audits being done/ HACCp[{01758^lucia™ debris/ APCOimpax small country neglect taxation/ comidityMarket trade expenditure™[{Green bank/ Inter Development banking/
It is a greedy, careless and mismanagement company. I support China Government to let it down.
Communist govt.China,s funds are in the BELT AND ROAD I. DEBPTH TRAPPED COUNTRIES , CORRUPT LEADERS AND CONTRACTORS, WAR ARSENALS AND WEAPONS, MAN MADE ISLANDS, ETC.
Elon musk can bail them out
Lol evergrande owes like trillions
How did this company survive at so long and let us hope investors lose their capital investment!.
It makes me happy this was all ready happening before the coronavirus but China new it so they realize virus will bring everyone down now that life is getting back to normal what was going to happen is happening China faked its value Russia fakes it value Turkey faked its value Brazil faked its value nations that have real freedom are doing ok
China the super power🤣😂😁😄😃
Love to see it, but unfortunately many countries have also invested into these scam bonds. Expect a collapse
This one is nothing in front of Chinese high speed rail loans… just wait for that .. period
Basically borrow build borrow build borrow build borrow build, until they made a profit from mortgages?
Sounds like U.S 2008 all over again
The difference between the Chinese and the Americans on how to deal with their own greedy corporations is that: The Americans government will happily allow those CEOs who drove their own companies into the ground to keep all their money and use the US taxpayers money to bailout those bloodsuckers. In other hand, the Chinese government will forced Evergrande to sell its own properties to settle the debt and no bail out. Which way of doing business would you prefer ??? I would choose the Chinese way, of course !!!
Will CCP make its officials class cough up corruption already in their pockets too? Doubt it
@Vanessa Li I wouldn’t hold my breath for that anytime. Go to big American cities and London and you will find out where that illegal stolen money is ending up.
@lostinmuzak it’s very likely … that’s why the property values in those cities are sky high, local people are priced out in their own countries
@Vanessa Li …Corruption and greed are human nature….They are known no boundaries…But corruption and greed in America are just blatantly obvious and legal for the super rich and ruling party. When America corrupts, the whole world cried !!!
May be CCP officials’ nature? Because in China they are so openly accepting bribe as if it’s normal everyday thing (not anywhere in the world because anyone found guilty will be jailed). Taking the Chinese standard, corruption is still wrong. it’s disgusting the way you try to justify it.
i feel no sympathy for these corporations or their investors.
That red top looking thing at 0:15 is a portable chair that you spin on that cost easy $500. Why the heck would it even be outside before the park was finished?
One of the reasons CCP banned youtube in their country was to avoid any uprising within the people that are being oppresed. They cannot fight back and no one to tell their stories because they always think they have no chance and they’re all alone keeping them blind about the events happening in the whole country
A few things on Evergrande that are rarely mentioned:
1). China government asked the boss of Evergrande to use his private assets to pay for debts. (of course, still not enough).
2). China will interfere when Evergrande officially goes bankrupt totally. That said, not using tax money to bail out easily.
3). China government will make sure that despite being bankrupt, Evergrande’s house projects for normal people should be protected and continued, one way or another, to ensure social security.
Those points are in contrast to the US dealing with lehman brothers back then.
You are speculating, aren’t you. How do you know those will happen? It’s not as if the Beijing government is transparent and answering any journalists’ questions. In China, Youtube is banned, so the Chinese citizens won’t even know of your comments, except for trolls paid by the government.
Buy gold.
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It feels good when china faces problem let xi jinping and his dogs fall
The valuations done on the assets used to leverage on must have been very debatable. You can easily see how this tsunami won’t stop. DOWN
When the company fails, they should take away the owners wealth to pay others who will lose everthng.
It will affect the USA also ……
GDP Growth is GDP Preserved, everything to be accounted, that includes the inventories of many transactions, since many are doing their inventories in accounting the details as well. It is also good to realize the amounts from previous years, wherein many can reflect the areas of success, as to performance and indicators of movable sales and realizing, sorting the details for them to be as efficient as previous years, reflected and applied and completed, being completed, to be completed,always certain. SMEs….
Good let it all crumble.
It’s not only Nevergrande Fantasia Kaisia Sinic …it’s the whole China that is build on lies,deception,cooked books,corruption and debts. We are witnessing China crumbling down like the old USSR .
Won’t impact the entire economy really? Real estate in China comprises of 30% of China’s GDP. That’s how the government reports economic growth. The reality is the real estate affects everything in China. Where do you think people will earn money without working in construction? How will people afford to buy stuff without jobs?
chinas economy , like all things, was just a fake. they tried to beat the Americans on garbage real esate projects and now it has come back to haunt them
Why would anyone wants to live there? To bring up generations of fairies?
Yes, I always wanted to marry a fairy and have little fairy children but somehow I always ended up with witches.
Fake country with a fake economy selling fake products.
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I have always said that China won’t continue to grow a ridiculous rates! China is becoming industrialized which means less population growth and slower more reasonable economic growth. Except China has screwed up and created a massive bubble to keep their economic growth so high. Now it’s going to kill them.
A combination of greed and fraud ( creative accounting)
There is a lesson for America here, not that we will learn it. Investment capital by itself is not enough to power an economy. No business can thrive without customers.
2:30 “IF china’s economy slows down” i’m sorry but there is no IF
Bruh it did
This is what happens when government and the private sector combine under communism. Curroption has no checks or balances when you have a monopoly on both sectors.
Overseas Holder of Bond defaulter. Why dont you asked the Fed to bailout them. LOL
Did you investigate how much foreign investment is in Evergrande?
Hi shallow ones, the US prints US$, then through financial hubs across the world the money went into China via complex financial instruments. Chinese companies such as Evergrande have been utilising this kind of easy US$ for speculative investments. Noe foreign investors will have to decide whether to cut lost or pump in more US$ to save their investments. Chinese government has many tools to deal with hostile American government. The Chinese gov won’t be embarrassed by the collapse of Evergande etc, but the American gov will be the focus when American institutions started to reveal the amount of US$ they lost.
Imagine the maintenance of all these ghost cities, they will be crumbling soon if they are not already …….The evil CCP and China may go down as fast as they came up….add the debt of their transportation projects, and again the maintenance …..and this is just the beginning of a myriad of problems coming their way.
And just like that, the Chinese all-cash buyers of homes in California have coincidentally disappeared, after bidding up SFH prices for 20 years. This is what many will blame the US housing crash on when people begin to point fingers at 2022 Fed rate hikes.
Auction off the assets & use the money to pay debts
It seems that the real damage from evergrande is far bigger than everyone ever imagined…
“too big to fail”
This is what happens when you let greed to take over. It’s madness.
We don’t need luxury. We need affordable housing and sustainability
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China suxs ….. America would’ve payed the security for working but because he works there they don’t pay him ….I wouldn’t work
confiscate all the assets of all the management and directors to pay off the debts.