Evergrande The ‘Controllable’ Demolition
Beijing is aware of the problem.
Thankfully, it's "controllable."
That's the word the PBoC used Friday to describe Evergrande. With missed payments piling up, the central bank's silence on the beleaguered developer at the center of China's burgeoning property meltdown had become deafening.
Earlier this week, some holders of two Evergrande dollar bonds with coupons due said they hadn’t received funds. The company missed loan payments last month and markets chafed at the ambiguous wording of
“PBoC suggested “some banks” may have misconstrued macroprudential policy shifts vis-à-vis the property sector.”
“Beijing instructed banks to speed approvals for home loans for the remainder of the year,”
CCP is blinking. I’m looking for China credit impulse to turn up.
Looks like a lot of folks are thinking the same thing: Dow Global Index up $20 (540 to 560) in the last ten trading days.