Chinese real estate developer Kaisa halts trading in Hong Kong, as debt concerns escalate
“Among Chinese developers, the company ranks second only to Evergrande in terms of issuance of U.S. dollar-denominated offshore high-yield bonds, according to Natixis.”
After Evergrand and others Chinas Real Estate takes another hit. And they’re still suffering from blackouts and brownouts (Power Shortages). Expect China to make some more noise internationally for two reasons:
1) To take the worlds attention off their economic weakness at home by projecting military strength over Taiwan and the South China Sea, and through showcasing technological achievements in new military weapons. Perhaps some additional disagreement in international talks that stall world wide initiatives.
2) To stoke nationalism among their population to distract Chinese Citizens from economic failures at home. The more China saber rattles to rally the people the worse conditions are on the mainland.
After years of watching the Chinese economy boom and bust every 3-5 years or so it’s like a broken record.
TL;DR: Think hard about the Chinese Economy before investing in Chinese stocks, or companies heavily dependent on China (Which is nearly impossible). Remember the more noise they make internationally the worse things actually are in China. Chinese initiated uncertainty is therefore an indicator of a worsening Chinese economy.
Note: Remember that Chinese Citizens are heavily invested in real estate and real estate sales are a primary source of revenue for Chinese towns and cities
Submitted November 05, 2021 at 01:39AM by StockTipsTips https://ift.tt/3CPNWZh
