A growing number of Chinese property developers are saying they can’t pay their debts, raising concerns of financial contagion as troubled property developer Evergrande Group missed another interest payment to bondholders on Tuesday.
Washington Post
Other China property firms in trouble
Other Chinese developers have also warned they could default on bond payments, and rising risks on Wednesday led credit rating agency S&P Global to downgrade two of the sector’s bigger companies, Greenland Holdings – which has built some of the world’s tallest residential towers – and E-house. S&P also said it could cut their ratings further….
Investors have been hoping China would ease monetary policy to stabilise its wobbly recovery, but data on Thursday showed China’s annual factory gate prices rising at the fastest pace on record in September due to soaring raw material costs.
Zhiwei Zhang, chief economist at Pinpoint Asset Management, said persistent inflationary pressure would limit the scope of any monetary policy easing.
Yahoo
Morgan Stanley analyst says it will be OK. Communists will rescue everyone.
“Policy is the most important leading indicator for property stocks,” Chen said…
Morgan Stanley has upgraded the China property sector to “attractive” in view of attractive valuation and more potential supportive measures aimed at boosting the real estate sector.
CNBC
It looks like everyone is counting on a government bailout. Pelosi to press: I find your lack of faith disturbing. Pelosi slams media for not ‘selling’ Biden’s massive spending bill.
House Speaker Nancy Pelosi has castigated the mainstream media for not “selling” her party’s $3.5 trillion ‘human infrastructure’ package, after a new poll showed the public doesn’t understand what is in the Biden administration’s ‘Build Back Better’ Act.
Skynews
What if government can’t pull itself out of the mire?
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