According to Bloomberg, Zhejiang Xingrun Real Estate Co. has collapsed with 3.5 billion yuan (USD $566.6 million) of debt. The collapse comes just days after China’s Premier Li Keqiang said China will “confront serious challenges this year” and warned to expect a wave of bankruptcies.
» China Developer With $567 Million Debt Said to Collapse – Bloomberg, 18th March 2014.
» China facing fresh ‘ghost town’ crisis after developer collapse – Sydney Morning Herald, 18th March 2014.
» China property default threat stirs ghost town fears – The Australian Financial Review, 18th March 2014.
» Chinese Property Developer Defaults on Loans – The Wall Street Journal, 18th March 2014.
» Looming property default in China raises fears of broader crisis – The Telegraph, 17th March 2014.
I have to chuckle a bit that the Chinese leaders are allowing defaults to occur.
They have always stepped in up until now and when growth drops below the line up they step with a new stimulus package, only for it to be blown on malinvestment.
It must be frustrating talking rebalancing knowing it is wasted breath and that more stimulus will only fast track the massive explosion.
It’s ok. This will be contained within China………..
It will be interesting to see who’s really been swimming naked: The Chinese with their forced investment and huge gold/silver/copper and other commidity stock piles, or the USA with their FIAT currency that only has the backing of future taxes upon the American population.
Who can blame anyone for being apathetic these days. Seriously. I’m gonna take up basket weaving.