PPCC - Pisitófilos Creditófagos - HoT SuMMeR 2021

[senslev]

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

[pollo]

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

[saturno]

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

La explicacion aquí..

https://www.elconfidencial.com/tecnologia/2021-03-13/artistas-digitales-nft-tecnologia-blockchain-sector_2987344/

[senslev]

Como comenté el otro día, me parece una jugada maestra, no hay límites. Se puede "tokenizar" cualquier cosa, crear mil universos virtuales y hacer lo que sea. Tampoco se necesita mucho para empezar, el dinero de un par de cumples y unos Reyes y ya puedes empezar. Igual que invertir en 0.1 acciones de Amazon o 1$ en una propiedad inmobiliaria. Es la lonchificación de la economía (o como se llame esto que hay ahora).

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

La explicacion aquí..

https://www.elconfidencial.com/tecnologia/2021-03-13/artistas-digitales-nft-tecnologia-blockchain-sector_2987344/

[Derby]

https://www.wsj.com/articles/how-beijings-debt-clampdown-shook-the-foundation-of-a-real-estate-colossus-11631957400

How Beijing’s Debt Clampdown Shook the Foundation of a Real-Estate Colossus

China Evergrande’s looming collapse and its ripple effect on the economy will pose a test for the government’s campaign to keep housing affordable for the masses

In a risky race against time that ran for two decades, China Evergrande Group turned billions of dollars in borrowed money into the dream of homeownership for millions of Chinese citizens.

It launched project after project in every Chinese province, selling apartments years before they were completed and scratching together enough cash to stay just ahead of massive interest bills.The party has ended. Years of aggressive borrowing have collided with Beijing’s crackdown on debt, leaving the giant developer on the brink of collapse. Construction of Evergrande’s projects in many cities has stopped. The company has faced a litany of complaints and protests from suppliers, small investors and home buyers who sank their savings into properties the company promised to deliver.

Cash is so short that this summer, the developer said it began paying bills to contractors and suppliers with unfinished apartments instead of actual money. A paint supplier based in the southeastern province of Fujian said Evergrande recently paid off the equivalent of $34 million in bills with three unfinished properties, which the supplier is trying to sell. At a construction firm in Wuhan, more than 200 employees have been forced to take pay cuts because some of Evergrande’s bills are past due, a manager at the firm told The Wall Street Journal.

Former and current employees say layoffs are adding up, and free meals that Evergrande used to provide for staffers at its headquarters have been canceled. In central China’s Hubei province, Evergrande has asked the local government to take over homeowners’ funds held in escrow accounts so they can’t be seized in legal disputes with creditors,  according to people familiar with the matter.

Evergrande didn’t respond to the Journal’s requests for comment. The company said on Sept. 14 that its apartment sales have slowed markedly since June, its asset-disposal plans haven’t materialized, and it has hired financial advisers—a move that brings it closer to a potential debt restructuring.

The looming collapse is a microcosm of China’s overheated housing market, in which prices have been climbing for years. Evergrande’s problems—and their ripple effects on the economy and social stability—are the biggest test of Beijing’s rejuvenated campaign to end debt-fueled speculation and stop home prices from surging while the government tries to lower inequality and keep housing affordable for the masses.

Karen Li, a 37-year-old in the southern Chinese metropolis of Shenzhen where Evergrande is headquartered, said she paid the full purchase price of 1.4 million yuan, the equivalent of about $216,800, three years ago for a roughly 400-square-foot apartment in one of its high-rise developments. Ms. Li, who works in retail sales and has yet to take ownership of what would be her first home, said she was notified last month that construction has been delayed.

“I thought it was reliable because it was a major corporation,” she said, adding that the property giant’s worsening cash crunch has thrown the project’s completion date into doubt. “For each ordinary family, this is a disaster.”

Evergrande said on Sept. 13 that it was facing unprecedented difficulties, and was doing everything possible to restore normal operations and to protect customers.

Market participants increasingly believe that Beijing will let Evergrande fail and inflict losses on its shareholders and bondholders, but find a way to protect the many people who have paid for unfinished apartments.

Research firm Capital Economics estimates that Evergrande has presold more than 1.4 million apartments valued at $200 billion that it has yet to finish, and said one outcome could be a managed restructuring in which other developers take over the company’s unfinished projects.



The company had $89 billion in outstanding debt at the end of June, about 42% of which comes due in less than a year, according to its most recent financial results. Evergrande’s total debt burden is the biggest for any publicly traded real-estate management or development company in the world, data from S&P Global Market Intelligence shows.

“It would send the wrong message if [authorities] were to step in at this stage to prevent a default,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “It seems very unlikely that they would help a private firm…that’s in a sector that they’re trying to rein in,” he added.

The 25-year-old conglomerate was the epitome of China’s housing boom and corporate debt binge. It opened for business right when the country started to introduce private homeownership, and built homes that were mostly targeted at individuals with modest incomes. Many people queued up for hours for the chance to buy an Evergrande apartment, often making full cash payments upfront for homes that took years to complete.

The company’s founder, chairman and biggest shareholder, Xu Jiayin, grew up in an impoverished village in central Henan province. He studied hard, went to college, and later worked at a state-owned steel company. He set up Evergrande, whose Chinese name means “constant” and “big,” in the southern city of Guangzhou when he was 37 years old, and became known professionally as Hui Ka Yan, the Cantonese phonetic spelling of his Chinese name.

Former employees and others who previously worked with Mr. Hui described him as a workaholic with high expectations and a propensity to take risks and make bold bets. He was also well-connected with wealthy individuals in Hong Kong’s business community who were active buyers of Evergrande’s stock and debt.



When the company was going public in Hong Kong in 2009, it told potential investors that “rapid property development” was one of its key business strategies that helped maximize its investment returns.

Evergrande bought hundreds of land parcels and sold more apartments than any other developer, and reported record sales year after year as home prices soared.

“Development is the absolute principle,” Mr. Hui said during a 2017 speech to employees, citing the late paramount leader Deng Xiaoping. That, coupled with the idea that “cash is king,” had ensured the company’s steady and rapid development, he added. By the end of 2018, Evergrande was building projects with a floor space of more than 33,000 acres across China, triple the amount just four years earlier.



The company borrowed liberally from banks and global investors, paying interest rates on junk-rated U.S. dollar debt that often ran into double-digit percentages. It expanded into theme parks, healthcare services, mineral-water production and electric-vehicle manufacturing. It enlisted Hong Kong actor Jackie Chan at one point to help promote its bottled water, and bought a professional soccer club in its home province.

The developer also financed construction with the help of short-term IOUs, known as commercial bills, that it issued to contractors and building-materials suppliers.

As it piled on debt, Evergrande paid out billions in dividends to stockholders, with most of that cash going to Mr. Hui as its largest shareholder. The payouts, plus the value of his shares, helped him become one of China’s richest men. He has received more than 34 billion yuan, the equivalent of $5.3 billion, in dividends since October 2018. In 2019, he declared that the company would start producing electric vehicles and aimed to become the world’s largest player in the fast-growing industry.

Problems started to emerge for Evergrande last year during the coronavirus pandemic, which caused lockdowns in China that damped property sales for months.

Evergrande had regularly offered price discounts on its apartments, and launched more aggressive promotions—in some cases up to 30% off advertised prices—to keep cash coming in the door.

It also encouraged its own employees to buy its apartments. In a campaign branded as “wealth creation” for its workers, Evergrande created a lucky draw where winners were picked to buy apartments with a 50% discount.

The company managed to chalk up yet another record year of sales, reporting the equivalent of $112 billion in contracted sales for 2020, up 20% from the previous year.

Trouble was brewing elsewhere. Last fall, Evergrande’s shares and bonds tumbled in value after documents circulated online that warned of a looming cash crunch at the real-estate giant. The documents appeared to show Evergrande’s communications with the local government warning about potential risks if it was unable to complete the planned listing of a flagship subsidiary.

The company had some years earlier sold stakes in its flagship property-development unit to various strategic investors, and promised them the unit would go public in Shanghai by early 2021, or it would repay them up to the equivalent of $19 billion.

Evergrande decried the documents as fake, and subsequently said most of those investors had agreed not to force it to cough up the funds.

Its troubles weren’t over. China’s authorities last year laid down what came to be known as the “three red lines” for real-estate developers—specific leverage ratios to avoid—all of which Evergrande had breached. The rules prevented the company from taking on new debts.

This past June, worries about Evergrande’s finances resurfaced, sending its bond and stock prices tumbling again. Internet users shared posts describing deep discounts to apartment prices offered by Evergrande. The company said it wasn’t offering widespread exceptional discounts.

On July 1, Mr. Hui made a public appearance at the Chinese Communist Party’s centenary celebrations in Beijing. His presence at the country’s most important event of the year was supposed to signal goodwill with top Chinese leaders and assuage concerns about his company, some political observers said.

Evergrande posted photographs of the 62-year-old chairman smiling in a navy jacket at Tiananmen Square on its website, extolling his more than 35 years as a party member. He was quoted saying he would continue to manage his business well and dedicate himself to public welfare.

The stock and bond selloffs deepened over the summer. Evergrande’s liquidity problems worsened, forcing it to start paying some of its suppliers and contractors with flats it hadn’t sold. In mid-August, financial regulators summoned Evergrande’s top executives and told them to fix the company’s problems without disrupting the financial and property markets.

The company is trying to offload other assets to raise cash, and is in talks to sell part of its electric-vehicle business, whose market value has declined by more than $80 billion from a recent peak.

Stephen Sum, who runs a real-estate agency focusing on China’s Greater Bay Area, said Evergrande’s troubles have hurt the wider property sector. “It’s like the game of Monopoly,”   he said of the developer’s survival strategy. In the real-estate board game, players that are short on cash have to sell their properties to avoid becoming bankrupt.

Business at Mr. Sum’s Hong Kong-based firm—which markets homes from many developers—has fallen by half since bad news about Evergrande dominated headlines. He said the news has made people more wary about buying properties in general.

[Derby]

https://www.reuters.com/article/china-evergrande-debt-investment/evergrande-says-six-execs-redeemed-investment-products-in-advance-idUSL4N2QK01J

Evergrande says six execs redeemed investment products in advance

Severe penalties would also be imposed, it said.

[Derby]

https://dailyshotbrief.com/the-daily-shot-brief-september-17th-2021/

United States: The Treasury curve has been flattening at the longer end, which may signify falling inflation expectations

[Derby]

https://www.theguardian.com/world/2021/sep/17/chinas-lehman-brothers-moment-evergrande-crisis-rattles-economy

‘China’s Lehman Brothers moment’: Evergrande crisis rattles economy

President Xi Jinping faces serious test of his financial reforms as struggles of property giant send ripples through real-estate sector

(...) Capital Economics agrees that even if a soft landing is engineered, the property sector that has driven China’s growth for 25 years is entering a period of decline that could have a profound effect on the world’s second-biggest economy.

Even reversing the red lines would not make much difference, they argue, because sales of land and homes were already falling, partly because China’s slowing population growth is acting as a natural break on the housing market. There are fewer young adults than there were 10 years ago, something shown by a 31% drop in marriages from 2013 to 2019.

“Relaxation of regulatory controls on the sector wouldn’t change this fundamental constraint,” said Mark Williams, Capital’s chief Asia economist. “Construction, a key engine of China’s growth and commodity demand, will slow substantially over the next few years, whether or not the economy escapes the current crunch unscathed.”

[pollo]

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

La explicacion aquí..

https://www.elconfidencial.com/tecnologia/2021-03-13/artistas-digitales-nft-tecnologia-blockchain-sector_2987344/

Yo no veo nada significativamente nuevo.

Se puede demostrar que una obra es única y creada por Manolo Gutiérrez. No veo dónde está la novedad conceptual, aparte de que es digital. Si el valor está en la obra, ¿por qué nos venden tanto la moto con la tecnología que posibilita la certficación?

Pues por lo de siempre: hype y pelotazos. El mercado es el mismo que el que había para el arte y el coleccionismo, la numismática, los cromos y las cartas de Magic.
O sea, nada nuevo, pero los que han empezado con la moto tienen que venderla.

Esto es como el blockchain, donde un montón de ignorantes supinos en puestos de dirección se dedicaban a decirle a sus desarrolladores que le metieran blockchain a su aplicación para poder venderla mejor. Como si les mandan ponerle USB y bluetooth a un plátano. O como cuando internet iba a crear una utopía de la sabiduría y el conocimiento en la humanidad.

Cada vez menos recursos para cosas útiles y más para imbecilidades. Se nota que hace falta que nos caiga un meteorito para que espabilemos. O tres.

Y ojo, no lo digo por la tecnología (matemáticas, en realidad, de tecnología poco) de los NFT y que le permita a artistas vender sus obras y sacar tajada de ellas, sino por todo lo que hay detrás de venta de humo y pseudoarte (vendo pixel art por cientos de miles de euros aprovechando sensacionalismo de los medios), que esos son los de siempre.

[pollo]

Como comenté el otro día, me parece una jugada maestra, no hay límites. Se puede "tokenizar" cualquier cosa, crear mil universos virtuales y hacer lo que sea. Tampoco se necesita mucho para empezar, el dinero de un par de cumples y unos Reyes y ya puedes empezar. Igual que invertir en 0.1 acciones de Amazon o 1$ en una propiedad inmobiliaria. Es la lonchificación de la economía (o como se llame esto que hay ahora).

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

La explicacion aquí..

https://www.elconfidencial.com/tecnologia/2021-03-13/artistas-digitales-nft-tecnologia-blockchain-sector_2987344/

Esto tiene ecos de "second life". Universo virtual sin límites que nos vendían como una realidad paralela en la que poco menos que residía el futuro de la humanidad, y se compraban y vendían propiedades por mucha pasta, generando titulares grandilocuentes y afirmaciones excesivamente optimistas.

Pues se quedó en lo que se quedó (creo que todavía existe). Es decir, en nada. Estas frases grandilocuentes son muy bonitas en teoría, pero en la práctica no hay suficientes pringaos con dinero para tirar. Cuando desaparezca el tirón inicial y hayan pringado unos cuantos, quedarán los que ya se dedicaban a ello. Esto por suerte no es como la vivienda, que se necesita por cojones para vivir.

Y tampoco hay que perder de vista el hecho básico, de que si se pone de moda y todo el mundo y su perro hace lo mismo, el valor tenderá a cero.

[sudden and sharp]

[ ¿Tic... Tac? ]   








--------------

[trovatore]

Sobre el lonchafinismo: Ahora vivo en Francia y aquí el embutido se compra por lonchas y no por peso como en España. No se le puede pedir al carnicero cien gramos de  jamón de York porque no lo entienden, hay que pedir cuatro lonchas... Pues bien, no hay ,manera de que te las hagan finas... es cultural...

Enviado desde mi SM-T580 mediante Tapatalk

[saturno]

Como comenté el otro día, me parece una jugada maestra, no hay límites. Se puede "tokenizar" cualquier cosa, crear mil universos virtuales y hacer lo que sea. Tampoco se necesita mucho para empezar, el dinero de un par de cumples y unos Reyes y ya puedes empezar. Igual que invertir en 0.1 acciones de Amazon o 1$ en una propiedad inmobiliaria. Es la lonchificación de la economía (o como se llame esto que hay ahora).

https://www.elconfidencial.com/tecnologia/2021-09-18/nft-games-juegos-dinero-axie-infinity-plants-undead_3290559/

¿Demasiado niño rata con dinero sobrante de los papis?
Porque vamos, otra explicación no le veo.

La explicacion aquí..

https://www.elconfidencial.com/tecnologia/2021-03-13/artistas-digitales-nft-tecnologia-blockchain-sector_2987344/

Esto tiene ecos de "second life". Universo virtual sin límites que nos vendían como una realidad paralela en la que poco menos que residía el futuro de la humanidad, y se compraban y vendían propiedades por mucha pasta, generando titulares grandilocuentes y afirmaciones excesivamente optimistas.

Pues se quedó en lo que se quedó (creo que todavía existe). Es decir, en nada. Estas frases grandilocuentes son muy bonitas en teoría, pero en la práctica no hay suficientes pringaos con dinero para tirar. Cuando desaparezca el tirón inicial y hayan pringado unos cuantos, quedarán los que ya se dedicaban a ello. Esto por suerte no es como la vivienda, que se necesita por cojones para vivir.

Y tampoco hay que perder de vista el hecho básico, de que si se pone de moda y todo el mundo y su perro hace lo mismo, el valor tenderá a cero.

Correcto. Observa sin embargo que los Pisitos en metaverso no están vinculados al territorio, cuando el alojamiento-necesidad-básica  sí lo está, La ventaja del metaverso es que la lógica del Pisito se desarrolle desvinculada de la lógica del alojamiento-básico

Por aclarar(me) un poco, El "Pisito" ya funciona como el mercado del arte: el precio  no es tanto un efecto de la escasez (oferta/demanda) sino del precio pagado en un tiempo simultáneo  por otro comprador, dado un contexto espacial equivalente (barrio, superficie, entorno fiscal, etc= que operan como cualidades de la obra "Pisito"). Lo mismo con el efecto riqueza asociado, el cual  descansa en la mentalidad piramidal de los miembros del club de los propietarios (sean de pisitos, de obras de arte, de NFT), En ese mercado, todo lo demás lo aporta el  apalancamiento financiero (Pisito es igual a himbersión),

Es decir  "el Pisito" no depende de la necesidad básica, es un título de valor que cotiza,  Lo que depende de la necesidad básica es el alojamiento-vinculado-al-territorio.

El problema que tenemos con el Pisito, es que tal y como lo tenemos ahora, interfiere con esas coordenadas reales, a saber,  territoriales (espaciales) y  necesidades básicas   (temporales, como la reproducción, la familia, la sociedad política), Esa vinculación territorial/demográfica tiene dos efectos;
-- el acaparamiento (que no es lo mismo que la escasez de oferta/demanda)
-- la pauperización, es decir, la gente se queda sin renta disponible
Ambos combinados producen el modelo del Capitalismo popular que gira en torno al Impuesto privado,  la destruccion de los tres agentes Trabajador-Empresa y del propio Estado (que se define por el Impuesto  público y la garantía de la propiedad privada del Capital productivo).

¿Por qué es interesante el fenómeno de los metaversos en el caso del Pisito-NFT?
Mi reflexión es que permite desvincular el Pisito-NFT del Alojamiento-básico.
El Pisito-NFT permite acelerar la separación de esos dos universos hasta disociar  completamente la economía del Pisito-NFT y del Alojamiento básico.
En cambio, como  bien de consumo "real", lo propio de una necesidad básica es que sea de providencia pública (el ejemplo del 99^3), como la comida, la salud o la educación, 


Entiendo que los metaversos (que estrictamente, son NFT complejos, como se intuye de los  2 articulos de ElPais), abren la posibilidad de himbertir en puros Pisitos desvinculados de restricciones de consumo "reales" (territoriales y demográficas).

Otro ejemplo que veo más cercano, lo tienes en el  ejemplo de ayer que trajo  Senslev con las inversiones en Ontario. (https://www.addyinvest.com/how-it-works/)
El ejemplo de AddyInvest lo veo bien creando un metaverso para himbertir en los mismos Pisitos reales,

Por ejemplo, pronto podrás abrir tu Pisito a inversores. Ellos te compran el Pisito, y tú les pagas un alquiler antes de venderlo. El tema está en articular la propiedad virtual (no territorial, no de-consumo) y el proceso de reventa y alquiler "reales"

Lo positivo de esa evolución, entiendo, es;
-- en la "economía" del Pisito-NFT,  una vez se vea liberada de las  restricciones territoriales/demográficas, empezará a  operar una oferta/demanda vinculada  a fundamentales que serán "reales" (rentabilidad del alquiler, por ejemplo).  Como en la Bolsa hasta los años 80, que cuando comprabas acciones, lo hacías por las empresas detrás, Aquí inviertes en inmuebles considerando su valor por fundamentales,
-- Inversamente, que se podrá proceder a la creación de una "providencia social" de Alojamiento básico, aplicando los modelos existentes en Austria (se citó a menudo, también Singapur pero Alemania UK o Francia tienen parques de vvdas públicas importantes), es decir para satisfacer las necesidades terroriales/demográficas de alojamiento básico,



Hace un tiempo decía que serían SOCIMIs las que te iban a recomprar tu Pisito por jugososos títulos a precio astronómico (y luego es asunto tuyo vender tus participaciones), pero no vería nada extraño ver aparecer SOCIMIs virtuales que te permitan "colocar" tu Pisito en un metaverso con coordenadas simplificadas, donde otros partícipes de otros países puedan  evaluar el Pisito por criterios puramente "artísticos",

Que habrá compradores, desde luego que sí. Imagino a Sudaneses o Pakistanies para quienes tener una propiedad por 10$ en Madrid o Barna, satisface su necesidad de estatus social, porque con que haya otros 10.000 Pakistanies o Sudaneses o Venezolanos dispuestos a comprarles la participación por 100$, sólo con eso, habrán cumplido con su "himbersion". Es la magia del Pisito y de las finanzas modernas ( es decir, no nos hagamos ilusiones, es la magia del Impuesto privado sobre Pakis, Sudaneses y Venezolanos -- por supuesto, toda semejanza con paises reales es fortuita)

Todos esos "himbersores" que ahora están expoliando a sus conciudadanos  se pondrán entonces a expoliar a gentes de otros lugares, hasta que los fundamentales les devuelvan a la realidad y tengan que alinearse con los precios de vivienda de  providencia pública que operan en esa realidad.   
Al final, las propias SOCIMIs "reales" recompraran los Pisitos-NFT a su valor de fundamentales (es decir, el precio de reconstrucción) pero la demografía ya no será la misma tampoco,

De una forma u otra, habrá revolución divertida. Se habrá cambiado de modelo. Lo que no tengo nada claro es que si esperamos a que suceda de forma pasiva, el Impuesto privado de EEUU sobre nosotros sea inferior al Impuesto privado nuestro a otros  países y que entretanto, no nos convirtamos tambien en miembros de la lista de expoliados,

Elijan como prefieren morir porque es el plazo de una vida, O con dignidad y significado de la libertad, o como meros esclavos, si no como remeros, al servicio de vuestros amos. Piénsenlo,

 

[saturno]

Kristalina Georgieva debilitada en el FMI tras acusaciones de favorecer a China
17/09/2021 - 20:30
https://www.rfi.fr/es/mundo/20210917-kristalina-georgieva-debilitada-en-el-fmi-tras-acusaciones-de-favorecer-a-china

Una investigación independiente publicada el jueves concluyó que, cuando era directora ejecutiva del Banco Mundial, Georgieva estuvo entre los responsables del organismo que presionaron al personal para que modificara datos para favorecer a China en la edición 2017 del informe anual "Doing Business", la publicación estrella del banco.

Los países miembros del FMI "tendrán que tomar una decisión sobre si se sienten cómodos con ella y si continuará en ese puesto", dijo a la AFP el Nobel de Economía Paul Romer. "Creo que deberían pensar en sus opciones".

Romer, economista jefe del Banco Mundial en ese momento, criticó a Georgieva por buscar "encubrir" y "blanquear" cuestiones que a él le preocupaban sobre el "Doing Business".

Finalmente Romer renunció en enero de 2018 después de hacer públicas sus inquietudes.

[Derby]

https://finance.yahoo.com/news/evergrande-moment-truth-arrives-bond-230000166.html

Evergrande Moment of Truth Arrives With Bond Payment Deadlines



(Bloomberg) -- China Evergrande Group bondholders are about to find out if the property giant’s liquidity crisis is as dire as it appears.

Interest payments on two Evergrande notes come due Thursday, a key test of whether the developer will continue meeting obligations to bondholders even as it falls behind on payments to banks, suppliers and holders of onshore investment products. Investors are pricing in a high likelihood of default, with one of the notes trading at less than 30% of face value.

Concern over Evergrande’s ability to make good on $300 billion of liabilities is spilling into China’s financial markets. Shares of other real estate firms have plunged, while the yield on an index of dollar-denominated junk bonds has climbed to about 14%, the highest in nearly a decade. The People’s Bank of China injected $14 billion of short-term cash into the financial system on Friday in a sign policy makers want to soothe nerves.

The Evergrande payments due Thursday include $83.5 million of interest on an 8.25%, five-year dollar bond, Bloomberg-compiled data show. There is a 30-day period before a missed payment is considered a default, according to the bond’s covenants. Evergrande needs to pay a 232 million yuan ($36 million) coupon on an onshore bond the same day.

In total, Evergrande has $669 million in coupon payments coming due through the end of this year. Some $615 million of that is on dollar bonds, Bloomberg-compiled data show. Fitch Ratings flagged the increased chance of a payment failure this month when it slashed the firm’s credit grade even deeper into junk territory, citing the risk of “probable” default.

Evergrande is also scheduled to pay interest on bank loans Monday, with a one-day grace period. Monday and Tuesday are public holidays in China. While details on the amount due aren’t publicly available, Chinese authorities have already told major lenders not to expect repayment, people familiar with matter said last week. Evergrande and banks are discussing the possibility of extensions and rolling over some loans, the people said.

https://www.nytimes.com/2021/09/19/business/china-evergrande-debt-protests.html
https://vervetimes.com/evergrande-gave-workers-a-choice-loan-us-cash-or-lose-your-bonus/

Evergrande Gave Workers a Choice: Loan Us Cash or Lose Your Bonus

The Chinese property giant owes $300 billion and is on the hook for as many as 1.6 million apartments. It may owe tens of thousands of its employees money, too.

When the troubled Chinese property giant Evergrande was starved for cash earlier this year, it turned to its own employees with a strong-arm pitch: Those who wanted to keep their bonuses would have to give Evergrande a short-term loan.

Some workers tapped their friends and family for money to lend to the company. Others borrowed from the bank. Then, this month, Evergrande suddenly stopped paying back the loans, which had been packaged as high-interest investments.

Now, hundreds of employees have joined panicked home buyers in demanding their money back from Evergrande, gathering outside the company’s offices across China to protest last week.(...)