Not so Evergrande

“Increasing the role of planning and state-led investment … has never been more compelling.”

Ne nujno na tak drastičen način, vendar je vrnitev države k načrtovanju in strateškem usmerjanju investicij ter uveljavitev “podjetne države” ključ za uspešen dolgoročni razvoj tržnih gospodarstev. Ne gre za socialistično planiranje, pač pa za strateško usmerjanje države in gospodarstva.

Michael Roberts Blog

China’s Evergrande Group is the second largest property developer in China and it is teetering on the brink of bankruptcy.  Evergrande has hired ‘restructuring advisers’ and warned that its liquidity is under “tremendous pressure” from collapsing sales, facing protests by home buyers and retail investors.  Based in Shenzhen in southern China, Evergrande is saddled with almost Rmb2tn of total liabilities or over $300bn.

The share price of the parent, 3333 HK, is down 76% from where it started the year. In August, Xu Jiayin, Evergrande’s founder and one of China’s wealthiest men, stepped down as chairman of the property group. Trading in the company’s bonds has been suspended in Shanghai. Police descended on Evergrande’s office building in Shenzhen when individual investors in the company’s myriad “wealth-management” products gathered to demand repayment.

Evergrande’s demise is a reflection of the dangers of uncontrolled property speculation in the capitalist sector of China’s economy. …

View original post 1,787 more words

%d bloggers like this: