Evergrande

Dornbusch’s Law says that crises take longer to happen than you expect, but then happen faster than you ever could have imagined.

The psychological side is just as impactful as the technical.

Protests have broken out at Evergrande offices in China—with up to 1 million homebuyers left in a devastating limbo, having paid deposits upfront for homes that may never be built.

Evergrande is not a vapor financial co, tho it’s high leveraged real estate developer sill retains good trunk of property/lands+ good cash flow biz like property mgmt co on its book

The situation can trigger macro panic but the substantial threat is far less than Lehman
Chinese article explains how it use it as front to purchase tons of lands
“real estate development with Chinese market characteristics”

EVERYTHING a Chinese RE does is to be qualified to buy more LAND
This maybe unknown to many westerners too
On the front the Chinese real estate co can do wide range of stuff, even building car, but the end goal is always to be qualified for more land purchase
https://nev.m.ofweek.com/2019-08/ART-71008-8470-30404460.html

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