{"id":953339,"date":"2021-11-02T11:43:32","date_gmt":"2021-11-02T15:43:32","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=953339"},"modified":"2021-11-02T12:49:43","modified_gmt":"2021-11-02T16:49:43","slug":"chinas-evergrande-somehow-made-recent-interest-payments-but-default-is-on-the-horizon","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-evergrande-somehow-made-recent-interest-payments-but-default-is-on-the-horizon\/","title":{"rendered":"China\u2019s Evergrande Somehow Made Recent Interest Payments But Default is on the Horizon"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchinas-evergrande-somehow-made-recent-interest-payments-but-default-is-on-the-horizon%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=953339&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div readability=\"58.030438675022\">\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-664088\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/11\/Evergrande-2-2.jpg\" alt width=\"474\" height=\"266\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/11\/Evergrande-2-2.jpg 474w, https:\/\/www.thegatewaypundit.com\/wp-content\/uploads\/Evergrande-2-2-105x59.jpg 105w\" sizes=\"auto, (max-width: 474px) 100vw, 474px\" \/><\/p>\n<h3><strong>Evergrande somehow made some recent interest payments to prevent the company from being officially insolvent, but the writing is on the wall.<\/strong><\/h3>\n<p>We\u2019ve been reporting about Evergrande for months, the behemoth Chinese realty concern that holds a reported $300 billion in debt.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"sjQDJ8AEcX\" readability=\"0\">\n<p><a href=\"https:\/\/www.thegatewaypundit.com\/2021\/10\/hong-kongs-richest-lady-now-taking-massive-losses-due-evergrandes-solvency-issues-emanating-china-real-estate-crisis\/\">Hong Kong\u2019s Richest Lady Now Taking On Massive Losses Due to Evergrande\u2019s Solvency Issues Emanating from the China Real Estate Crisis<\/a><\/p>\n<\/blockquote>\n<p>Recently China gave an indication of how it will handle Evergrande\u2019s impending insolvency.<\/p>\n<p class=\"article-extras trending\">\n<strong>TRENDING:<\/strong> <a href=\"https:\/\/www.thegatewaypundit.com\/2021\/11\/explosive-revelation-indian-television-exposes-pfizer-bullies-blackmails-countries-covid-shots-video\/\" data-type=\"Internal link\" data-type-location=\"in-content-trending\">EXPLOSIVE REVELATION: Indian Television Exposes How Pfizer Bullies and Blackmails Countries for COVID Shots &#8211; &#8220;Desperate Countries force to Make Humiliating Concessions&#8221; (VIDEO)<\/a>\n<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"ZEcO8IiGRB\" readability=\"0\">\n<p><a href=\"https:\/\/www.thegatewaypundit.com\/2021\/10\/china-tells-evergrande-billionaire-pay-off-insolvent-companys-300-billion-debt-8-billion-worth\/\">China Tells Evergrande Billionaire to Pay off His Insolvent Company\u2019s $300 Billion in Debt with His $8 Billion in Worth<\/a><\/p>\n<\/blockquote>\n<p>Yesterday, <a href=\"https:\/\/foreignpolicy.com\/2021\/11\/01\/china-evergrande-bail-out-real-estate\/\">Foreign Policy<\/a> reported on the Evergrande crisis and China\u2019s likely actions:<\/p>\n<blockquote readability=\"44.215480172002\">\n<p>In recent weeks, the world\u2019s most heavily leveraged developer, China\u2019s Evergrande Group, a real estate holding company, has taken the world by storm. With assets across sectors spanning property services, electric vehicles, and bottled water, Evergrande missed several interest&nbsp;<a href=\"https:\/\/nam10.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fwww.nytimes.com%2F2021%2F10%2F11%2Fbusiness%2Fevergrande-bond-payments.html&amp;data=04%7C01%7Croselyn.hsueh%40temple.edu%7Cb3da31a781a84275b42608d9905cfa5a%7C716e81efb52244738e3110bd02ccf6e5%7C0%7C0%7C637699551287770063%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=kGJyTQHgaNJpcPmOtop7tMsIav8xmT7m3g49WasjbEU%3D&amp;reserved=0\" target rel=\"noopener\">payments<\/a>&nbsp;before making a&nbsp;<a href=\"https:\/\/www.washingtonpost.com\/world\/asia_pacific\/evergrande-china-debt-bond-payment\/2021\/10\/22\/eff0c986-2fd9-11ec-8036-7db255bff176_story.html\" target rel=\"noopener\">key payment<\/a>&nbsp;to bondholders on Oct. 22. With an estimated&nbsp;<a href=\"https:\/\/nam10.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fwww.washingtonpost.com%2Fworld%2Fasia_pacific%2Fchina-evergrande-debt-markets%2F2021%2F09%2F22%2Feeb80fd4-19cc-11ec-bea8-308ea134594f_story.html&amp;data=04%7C01%7Croselyn.hsueh%40temple.edu%7Cb3da31a781a84275b42608d9905cfa5a%7C716e81efb52244738e3110bd02ccf6e5%7C0%7C0%7C637699551287780061%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=tB%2BzNRWdYi2c93GSr1mccLFzA%2FPdvyKFxNVgF853sFo%3D&amp;reserved=0\" target rel=\"noopener\">$300 billion<\/a>&nbsp;in liabilities, Evergrande\u2019s payment troubles are affecting global institutional investors,&nbsp;<a href=\"https:\/\/nam10.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2021-10-08%2Fevergrande-creditors-brace-for-battle-on-fate-of-offshore-assets&amp;data=04%7C01%7Croselyn.hsueh%40temple.edu%7Cb3da31a781a84275b42608d9905cfa5a%7C716e81efb52244738e3110bd02ccf6e5%7C0%7C0%7C637699551287780061%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=SOx8nSZXOd8nzozFeb5L8oG01yDdrLh65c08XraLJrE%3D&amp;reserved=0\" target rel=\"noopener\">offshore bondholders<\/a>, and China\u2019s&nbsp;<a href=\"https:\/\/www.nytimes.com\/2021\/10\/12\/business\/evergrande-homebuyers-debt-china.html\" target rel=\"noopener\">homebuyers<\/a>&nbsp;alike.<\/p>\n<p>Conventional wisdom suggested the Chinese Communist Party would have&nbsp;<a href=\"https:\/\/www.washingtonpost.com\/world\/asia_pacific\/china-crackdown-tech-celebrities-xi\/2021\/09\/09\/b4c2409c-0c66-11ec-a7c8-61bb7b3bf628_story.html\" target rel=\"noopener\">intervened<\/a>&nbsp;at the company level to stem the adverse effects on the economy. After all, earlier this year, the Chinese government&nbsp;<a href=\"https:\/\/www.nytimes.com\/2021\/08\/19\/business\/economy\/huarong-bailout-china.html\" target rel=\"noopener\">ordered<\/a>&nbsp;Chinese banks to provide loans to state-owned China Huarong Asset Management to stem the risk of market contagion and stabilize its cash flow. Huarong\u2019s offshore U.S. dollar bonds declined in value when it failed to release its 2020 financial results, and the company suspended trading of its shares in April.<\/p>\n<p>Why, then, has the Chinese central government not intervened to rescue Evergrande?<\/p>\n<p>The answer lies in the sector. For strategic sectors, such as&nbsp;<a href=\"https:\/\/www.nytimes.com\/2021\/05\/18\/business\/economy\/china-bank-debt-huarong.html\" target rel=\"noopener\">banking<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/abs\/10.1111\/ropr.12149\" target rel=\"noopener\">telecommunications<\/a>\u2014perceived as key for the national technology base, national security imperatives, and domestic industry competitiveness\u2014the Chinese Communist Party tends to centralize and reinforce state control in market coordination and property rights arrangements. For less strategic sectors, the Chinese central government has shown a willingness to deregulate and decentralize market governance to local governments, business and sector associations, and other market actors. I call this \u201c<a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/abs\/10.1111\/gove.12139\" target rel=\"noopener\">bifurcated capitalism<\/a>.\u201d<\/p>\n<p>Because it\u2019s perceived to be of less strategic value for the national technology base and national security than more critical sectors, Evergrande and its future depends on local government and business stakeholders rather than the Chinese central state seeking domestic political consolidation and legitimacy to maintain its authoritarian rule.<\/p>\n<\/blockquote>\n<h3><strong>It\u2019s unknown where Evergrande will obtain more funds to pay off its current outstanding debt.&nbsp; Local governments and business stakeholders don\u2019t like losing money.&nbsp; It\u2019s hard to believe this company will not become insolvent soon.<\/strong><\/h3>\n<\/div>\n<div readability=\"13.435897435897\">\nHello Commenters!<\/p>\n<p>The Gateway Pundit is always committed to ensuring your voice can and will be heard. To reinforce that commitment, we are switching our commenting platform to Insticator. Don\u2019t worry! All you have to do is create a commenting account with Insticator, and then you will be able to link past comments into your new Insticator account. For more information, we\u2019ve written an article that you can read <a href=\"https:\/\/www.thegatewaypundit.com\/2021\/10\/gateway-pundit-moving-new-commenting-system\/\">HERE<\/a>. If you have any feedback or questions about your Insticator commenting account, please email them at: <a href=\"https:\/\/www.thegatewaypundit.com\/cdn-cgi\/l\/email-protection#dcbfb3b1b1b9b2a8b5b2bbf1b4b9b0ac9cb5b2afa8b5bfbda8b3aef2bfb3b1\" target=\"_blank\" rel=\"noopener\"><span class=\"__cf_email__\" data-cfemail=\"9cfff3f1f1f9f2e8f5f2fbb1f4f9f0ecdcf5f2efe8f5fffde8f3eeb2fff3f1\">[email&nbsp;protected]<\/span><\/a>.\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Evergrande somehow made some recent interest payments to prevent the company from being officially insolvent, but the writing is on the wall. We\u2019ve been reporting about Evergrande for months, &#8230;<\/p>\n","protected":false},"author":61,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-953339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/953339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=953339"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/953339\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=953339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=953339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=953339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}