- Evergrande’s Chinese bonds have been paid off in some form which we don’t know, while their Dollar-denominated bonds have gone into default. Evergrande also guaranteed the bonds of Fantasia, which is nowhere to be found in any of Evergrande’s financial statements.
- Moreover, there has not been one peep from the Chinese government that Evergrande had committed any sort of violation by not informing investors that they had guaranteed Fantasia’s bonds.
- Forty-one per cent of the Chinese banking system’s assets are associated with the property sector, and seventy-eight per cent of the invested wealth of the Chinese people is in housing. Lehman’s collapse was nowhere near this size.
For further details see:
The Winter Of Our Discontent