Evergrande Makes Lehman Trend Again

Evergrande Makes Lehman Trend Again

The market "is signaling that it's fretting over more than Evergrande," one headline read, on Tuesday afternoon. Ironic because, according to headlines themselves, Evergrande is all that matters. The amusing figure (below) is Bloomberg's story count feature. With keyword "Lehman." To the best of my knowledge, Dick Fuld isn't trending and neither is Erin Callan. Which means that at least as far as the financial med
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5 thoughts on “Evergrande Makes Lehman Trend Again

  1. Well the Chinese government has the will and the capital. The scary part is if lending dries up for other more solvent developers. It also points out the stranded investment as you point out. Also municipalities and provincial governments use land sales as a way to fund their operations. That likely be a second order effect, which may end up being crucial.

  2. Its close to impossible to loose money as a developer when the market is with you, and it vice versa. What we see is a sign of a bigger problem, housing is rapidly turning ugly in China, and it will detoriate even more as people get scared and see the risks… and banks will not be to interested in financing more projects.. This is not a Lehman moment, but the start of new era in China – which is also facing a demographic nightmare.

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