China’s ‘Lehman moment?’ Big investment firm misses payments
China’s ‘Lehman moment?’ Big investment firm misses payments
A major Chinese investment trust has missed payments to corporate investors, sparking a rare protest and adding to concerns that a slump in China’s property market could trigger a wider financial crisis.
A major Chinese investment trust has missed payments to corporate investors, sparking a rare protest and adding to concerns that a slump in China’s property market could trigger a wider financial crisis.
At least three Chinese companies — Nacity Property Service, KBC Corporation and Xianheng International Science and Technology — said in separate stock exchange filings in recent weeks that Zhongrong Trust had failed to pay the interest and principal on several investment products. The scale of payments missed exceeded 110 million yuan ($15 million), according to their statements.
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here's hoping that housing prices crash soon 🙏🏻
The effects of the real-estate bubble popping would also lead to other failures which would mean housing prices being cut in half would still be unaffordable.
The ideal would be a cooling of the market that puts increases well below the rate of inflation for an extended period (or forever lol)
It would be fun to make snowmen in Hades, but the climate isn't favorable.
Well I suppose that's true when 19% of your GDP is in real estate...
The face value isn't the big problem, the derivatives are.