Evergrande Crisis Escalates as Protests Break Out in China

Read the Story

Show Top Comments

They are the largest developer. I wonder what the chances are the China is allowing them to go bust for some disinflation to the extremely inflated housing market and debt crisis. Afterwards with a side of nationalization?


Most likely is that some assets (by some, I mean >100 billion USD) get bought at not-cutthroat prices by state banks or state institutions to be reclassified social housing, or leased to state employees at a nominal rate or some version of a lease-to-buy plan where state employees pay a portion of their income towards the asset price up to the end of their working life. ​ Evergrande then reallocates a future portion of their portfolio to always being this social housing program where they pledge to be non-profit, etc etc. ​ Socialism with Chinese trillion-dollar REIT characteristics, you might say. ​ Edit: I say most likely because it is the most sensible compromise between bailout and let-it-fail, and mitigates the fallout from both policies and Chinese macroeconomic Big Brains like Liu He are incredibly competent with balancing the market with socialism, aka, reining of capital.


this is going to end up badly for the CCP. there are a lot of people connected to evergrande and there will be a lot more protests. perhaps we will see a repeat of Tiananmen but everywhere in China!