Rich Dad Poor Dad Author calls Evergrande a house of cards while China's civil servants are preparing for the downfall of the company
Rich Dad Poor Dad Author calls Evergrande a house of cards while China's civil servants are preparing for the downfall of the company
The world still focuses on the financial demise of China's real estate giant Evergrand and, according to the Chinese authorities, has asked the private sector to "prepare for the possible storm". According to reports, Beijing may not be ready to save the company, although the Volksbank from China has already provided $ 18.6 billion in liquidity to relieve the main load.
Chinese authorities warn of a "possible storm", PBOC injects $ 18.6 billion in China's markets
The financial markets could still experience an irrepressible storm if Evergranden becomes unable to pay and this into a loan infection . According to the Wall Street Journal (WSJ) on Thursday, high -ranking officials from China have instructed the local authorities to prepare for the fall of the Evergranden developer.
evergrande has accumulated a debt and since the Fallout on September 20, the giant concentration trembles to the foundations. Evergrande was able to pay the due debts on Wednesday, but it is not known whether Evergrande can pay the offshore bonds on Thursday.
A reason why the company has made it so far since Evergrande's downward trend on September 20 is the fact that the central bank of the economy has made $ 18.6 billion available to strengthen liquidity. The People’s Bank of China (PBOC) used reverse pension business for this process.
The market mood improved after the injection, but the WSJ report determines that the central bank may not relax the situation. Eugene Leow, Senior Rate Strategist at DBS Bank Ltd. In Singapore, said that the financial injection was intended to strengthen the mood. Leow emphasized:
The net injection of the PBOC is supposed to calm the nerves because the market is worried about Evergrande. Even if the goal can be to create discipline, infection into the real economy or other sectors must also be prevented.
Robert Kiyosaki: "China's evergrand group cannot pay"
Evergranden from real estate China's middle class sold after the billionaire XU Jiayin founded the company in 1996. other show that the debt of the real estate giant at more than 300 Billions of US dollar have grown.
The sales of Evergrande have recently broken in and construction workers have hired their work due to payment delays. There is a fear that a number of real estate will also be faltered in the event of a failure of Evergrand. reported that Evergrande failed, the payment for the property in the Chinese city of Anqing in the province make.
The author of "Rich Dad Poor Dad" Robert kiyosaki He called the Evergrand situation a "house of cards".
"House of Cards comes down", kiyosaki called this week. "Real estate with [The] Aktienmarkt. China's Evergrand Group cannot pay. Assessment of real estate [IS] fake. Will [the] ImmobilienCrash spread from [the] us.
What do you think that the Chinese authorities tell the local officials that they should prepare for a storm? What do you think of Robert Kiyosaki's assessment of the situation? Let us know your opinion on this topic in the comments below. Bedy verification : Shutterstock, Pixabay, Wiki Commons