Wall Street firms have brushed aside concerns about recent upheaval in China—including the crackdown on businesses by the Chinese Communist Party—and see the country as a good bet. The New York Times reported that BlackRock, the largest asset manager on the planet, recommended that investors increase their exposure to China while bankers from J.P. Morgan and...
42 search results for: Evergrande
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WILL EVERGRANDE DIVE CRASH CHINESE MARKETS?
Major investors, including Blackrock, Bridgewater Associates and Pacific Investment Management, are shrugging off the financial crisis that has struck Evergrande, China’s largest property developer, and sent a wave of anxiety through global financial markets earlier this month, according to The Wall Street Journal. Evergrande announced earlier this month that it might not be able to...
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CHINA’S REAL ESTATE MARKET TEETERS ON EVERGRANDE’S DEBT
Chinese real estate giant Evergrande, with 200,000 employees and more than 1,300 residential developments across the country, owes $300 billion and has warned investors that it might have no alternative but to default. That announcement brought investors literally to the company’s doors, demanding their money back, and jolted analysts and the real estate industry to...
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SPOTLIGHT: REAL ESTATE’S TAILSPIN
About $175 billion of real estate debt is classified as “distressed,” meaning there is a growing likelihood of it not being repaid, according to data compiled by Bloomberg.
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SPOTLIGHT: CHINA STRUGGLES TO RIGHT ITS ECONOMY
China’s economic activity in construction, manufacturing, and services slowed more than expected in November, hobbled by continuing, widespread anti-COVID lockdowns, an unresolved financial crisis in the real estate sector, and fewer orders for the country’s factory output.
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SPOTLIGHT: CHINA
Shops and warehouses in the U.S. and Europe are overstocked with inventory, causing orders for new goods from China’s factories to plunge by as much as 50 percent last month, according to the Financial Times.
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REFINANCING DEBT COULD ADD $1 TRILLION TO COSTS
Emerging nations and wobbly corporations needing to refinance debt will need to pay interest an average of 1.56 percentage points higher than the current rate for the same securities—a total of $1.01 billion extra, according to Bloomberg’s analysis of bonds owed by current public-and private-sector debtors.
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SPOTLIGHT: CHINA
CHINA’S ECONOMIC DATA PAINTS MIXED PICTURE On 16 September, China’s National Bureau of Statistics released data showing that home prices continue to fall and consumer spending remains relatively feeble. In contrast, new jobs were added and infrastructure investment, a tried and true means for government agencies to goose the economy, increased. Across 70 major cities,...
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SPOTLIGHT: CHINA
CHINA SOLIDIFYING ITS POSITION AS MANUFACTURER TO THE WORLD Despite corporations’ new determination to bring supply chains geographically closer to their factories, China is likely to continue to dominate global manufacturing, The Wall Street Journal reported. China’s share of global factory output edged up from 13 percent in 2019 to 15 percent post-COVID and probably...
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SPOTLIGHT: CHINA
INVESTORS CIRCLE BACK TO CHINA In June, investors put more than $6 billion into 20 international funds focused on Chinese stocks, more than in any month since early 2021, according to Morningstar. Investors are betting on signs that China’s crackdown on its tech sector may be easing and that the worst of the country’s property...