Tag: debt crisis

Unfinished Buildings in China Put Trillions of Chinese Bank Loans at Risk

Amid the real estate debt crisis, China Evergrande Group and two other Chinese property giants have fallen from the 2022 Fortune Global 500, reducing the number of Chinese property developers to five from eight last year. Fewer Chinese developers in the Global 500 reflect the collapsing Chinese real estate market as domestic demand and home…


Chinese Local Governments Cut Employees’ Pay as Debt Escalates

Amid a growing debt crisis, government employees in at least five Chinese provinces have reported sudden, substantial pay cuts, affecting their livelihoods. In December, government employees from five provinces—Jiangsu, Zhejiang, Guangdong, Fujian, and Shanghai—have disclosed their salary reduction notices on Weibo, China’s version of Twitter. The reported pay cuts were around 20 to 30 percent….


In US, Unrestricted Spending and Borrowing Continues Amid Debt Crisis

Commentary Can we talk about the U.S. debt crisis? We can’t? Dang. You may not even know they’re having one. After all, they just keep borrowing, spending, and taxing, while progressives say tax rates are, like, way too low. So perhaps you missed the stuff in your news feed about the debt ceiling. Or the…


China’s Modern Land Misses Bond Payment, Property Shares Drop

HONG KONG/SHANGHAI—Modern Land missed a bond payment, the latest Chinese property developer to do so, adding to worries about the wider impact of the debt crisis at behemoth China Evergrande Group, and dragging on shares in the sector. Modern Land (China) Co., Ltd. said in a filing that it had not repaid principal and interest…


Chinese Regime’s State Media Target Private Banks

Recently, a number of private real estate companies in mainland China went bankrupt, and Chinese state media blamed the problem on illegal loans by private banks. Some financial commentators believe that private banks will become targets for suppression under communist leader Xi Jinping’s regime. China’s state outlet Economic Daily published a op-ed on Oct. 15,…


CMC Says Sept Market Volatility Boosts Trading Volumes

Online trading platform CMC Markets Plc pointed to a pick-up in client activity in September on Thursday, as the China Evergrande debt crisis and inflation concerns spurred market volatility and boosted trading volumes. Stocks globally have retreated in recent weeks after months of recovery, due to concerns about property developer China Evergrande and rising inflation,…


Evergrande Share Trading Suspended as Debt Test Approaches

On Oct. 4, trading in the shares of China’s troubled real estate giant Evergrande was suspended on the Hong Kong Stock Exchange (HKEX), as the indebted developer missed interest payment deadlines and continued its efforts to repay investors. A regulatory filing (pdf) with HKEX said, “the trade suspension came ahead of an announcement containing inside…


China Evergrande’s Snowballing Debt Crisis

HONG KONG—China’s most indebted property developer Evergrande Group is struggling to solve its debt crisis, while there are increasing signs that policymakers are stepping in to avoid a hard landing for a company deemed too big to fail. Here is a timeline of events leading to its debt problems and what the firm has done…


World’s Poorest Nations Face ‘COVID-19 Debt Trap’

WASHINGTON—The world averted a systemic debt crisis amid the pandemic. However, the poorest developing countries continue to face significant debt problems, raising global worries over multiplying debt traps by creditors like China. Addressing the rising risk of a systemic debt crisis in developing countries is one of the key themes at this week’s virtual spring meeting of…