The debt-riddled underbelly of some of China’s bigger companies perhaps provides another layer of insight into Xi Jinping’s abrupt imposition of a new and aggressive approach toFor decades it was the entrepreneurs who helped turbocharge China’s growth rate, particularly during the ultra-high growth in the decade after the financial crisis where Chinese companies gorged on the torrents of liquidity, the access to cheap debt and the stimulus China poured into its domestic system and economy.
with debts of more than $100 billion at the start of this year after several years of attempts to unwind its debt-fuelled global spending spree. It was placed in state hands last year. With most of China’s house wealth tied up in property and Evergrande one of the country’s largest developers its struggles are of national significance and concern. It has been engaged in a firesale of assets that has reduced its debt load from a peak of about $180 billion last year to about $120 billion but it has total liabilities – including trade creditors – of more than three times that amount.
The authorities wouldn’t have been taken by surprise. They directed property developers to reduce their leverage and stop issuing new debt last year and called in Evergrande last month to put pressure on the company to stabilised its finances without destabilising financial and property markets. HNA, Huarong and Evergrande are almost certainly the tip of an iceberg, with the continuing attempts by Beijing to deleverage and restructure its largest enterprises an indication of the perceived/real fragility and vulnerability of the corporate sector.
Afghan_Situation has exposed that Citizens of US, China and Russia are in a tightest control and rigid containment by their Security Agencies. They're degraded with drugs and evil practices, to enslave and exploit by Corporations and Satanic Societies. World_People are next.