EnergyUnlimited wrote:300 * 10^9 USD?
For China these are peanuts.
That is like if every Chinese citizen lost about 200 USD.
Not a great deal.
Its not like that at all.
The losses aren't distributed equally among all Chinese citizens.
The loses are mainly impacting the banking and the housing sector.
For instance, there are over a million Chinese investors in EVERGRANDE who will lose all their money if EVERYGRANDE goes bankrupt.
There are over a million Chinese families who PAID IN ADVANCE for apartments that Evergrande was supposed to build. They will lose all their money.
There are banks and individuals in China and outside China who bought Evergrande bonds. They will lose all their money.
And its likely there will be contagion, i.e. Banks and the housing sector in China are being hurt by a collapse in Evergrande, and some of them may also collapse.
The concern is that Evergrande may be like Lehman brothers, and just as the Lehman brothers bankruptcy triggered off a financial crisis in the US, the Evergrande bankrucupcy may trigger off a financial crisis in China. .
Evergrande is bankrupt! Stop all work on building one million apartments that have already been paid for!!!
Cheers!