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Rich dad calls poor dad writer Evergrand a ‘house of cards’ as Chinese officials prepare for the firm’s death – Economy Bitcoin News


The world is still focusing on the financial collapse of Chinese real estate giant Evergrand, and Chinese authorities have told the private sector to “be prepared for a possible storm.” Reports suggest that although the People’s Bank of China has already provided 18 18.6 billion in liquidity to alleviate the crisis, Beijing may not be so keen on bailing out the company.

Chinese authorities warn of ‘potential storm’, PBOC injects বাজারে 18.6 billion into Chinese market

If Evergrand defaults and it causes a credit transition, financial markets could still be in for a turbulent storm. According to the Wall Street Journal (WSJ) on Thursday, senior Chinese officials have asked local authorities to prepare for the death of property developer Evergrand.

Evergrand was a mountain of debt, and since its fall on September 20, the giant corporation has been moving to its foundations. Evergrand was able to repay Wednesday’s clearance, but it is not known if Evergrand will be able to meet Thursday’s offshore bond.

The reason the company has moved so far since the Evergrand slide on September 20 is that the central bank has added 1.6 per cent to the economy to boost liquidity. gave billions of dollars injected. The People’s Bank of China (PBOC) has entered into a reverse recharge agreement for this process.

Market sentiment has improved since the injection but the WSJ report notes that the central bank cannot ease the situation. Eugene Leo, a senior rate strategist at DBS Bank Ltd. in Singapore, explained that the injection was meant to boost mood. Leo emphasizes:

The net injection of PBOC is probably aimed at calming the nerves because the market is concerned about Evergrande. While the goal may be to create discipline, there is also a need to prevent infection in the real economy or other sectors.

Robert Kiyosaki: ‘China’s Evergrand Group Can’t Pay’

Estimates show that billionaire Xu Zhain has sold millions of properties to China’s middle class since the company was founded in 1996. Records also show that at the time, the real estate giant’s debt totaled more than $ 300 billion.

Evergrand sales have declined in recent times and construction workers have stopped work due to payment delays. There is a fear that if Evergrand fails, several properties will also be destroyed. Report Also show that Evergrand has failed to pay for land space in Anqing City, Anhui Province, China.

Robert Kiyosaki, author of “Rich Dad Poor Dad” called the Evergrand situation a “house of cards.”

“The house of cards is coming down,” Kiyosaki said Said This week. “Real estate is in shambles [the] The capital market. China’s Evergrand Group cannot pay. Feature evaluation [is] Duplicate. Willpower [the] The real estate crash spread [the] Us? Yes. Great stock and real estate opportunities are coming for smart investors. A disaster for stupid investors, ”he added.

What do you think about the Chinese authorities telling local officials to prepare for the storm? What do you think of Robert Kiyosaki’s situation? Let us know what you think about this in the comments section below.

Tags in this story

.6 18.6 Billion, $ 300 Billion Debt, China, China Real Estate, Chinese Real Estate, Credit Transition, Default, Default Risk, Economic, Economic Slide, Economy, Evergrand, Evergrand Group, Evergrand Real Estate Group, Hong Kong, PBOC , China’s Property Market, Rich Dad Poor Dad, Robert Kiyosaki, WSJ

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