Domino effect: Communist China’s Real Estate Woes Ripple Through Prestigious Projects Around the World

Author: MOS Finance Team – Leah

LONDON, Oct 31 (Reuters) – Developers of prestigious mega-projects in some of the world’s largest cities, including London, New York, and Sydney, are facing a scramble for cash. The reason is that the real estate crisis in Communist China is inextricably linked to these projects.

Similar to Evergrande Group’s (3333. HK) financial struggles, another Shanghai-based company, Greenland Holdings (0337. HK), is facing the same dilemma. Greenland has billions of dollars worth of projects in Sydney, Brooklyn, Los Angeles, Paris, and Toronto. And all of that money was obtained by breaching the debt red line.

Similar Communist Chinese real estate developers abound. They pay high costs to compete for overseas development lots, and when their capital chains break down, these real estate developers rush to sell assets for cash.

Between 2013 and 2018, Communist Chinese developers made massive international expenditures beyond their ability to repay. Then as policies tighten, these companies’ dreams of having a latecomer take over the hot potato are about to be dashed. They will be eager to sell at a reduced price.

The Communist Chinese government is short-sighted. They kill the chicken to get the eggs. Now it is time to pay the debt.

Sources: Domino effect: Communist China’s Real Estate Woes Ripple Through Prestigious Projects Around the World

Edited by: Hetangyuese
Proofread by: Hetangyuese
Posted by: Hetangyuese

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