Rich Dad Poor Dad Writer Calls Evergrande a ‘House of Cards’ While Chinese Officials Are Preparing for the Company’s Demise – Bitcoin News

The world is still watching the financial collapse of Chinese property giant Evergrande, which has told the private sector to “prepare for possible storms,” ​​according to Chinese authorities. Although the People’s Bank of China has provided $18.6 billion in liquidity to cushion the blow, Beijing may be less willing to bail out the company, the report showed.

Chinese authorities warn of ‘potential storm’, PBOC injects $18.6bn into Chinese market

Financial markets could still face an unruly storm if Evergrande defaults and triggers a credit contagion. Senior Chinese officials have told local authorities to prepare for the collapse of real estate developer Evergrande, The Wall Street Journal (WSJ) reported on Thursday.

Evergrande has accumulated a lot of debt, and the giant company has been teetering since the Sept. 20 fallout. Evergrande was able to pay off its debt due on Wednesday, but it was unclear whether Evergrande could meet its offshore bond debt on Thursday.

One of the reasons Evergrande has been able to do this since its Sept. 20 slide is because the central bank has pumped $18.6 billion into the economy to boost liquidity. The People’s Bank of China (PBOC) used reverse repurchase agreements in the process.

Sentiment improved after the injection, but the Wall Street Journal report noted that the central bank may not continue to ease the situation. Eugene Leow, senior rates strategist at DBS Bank in Singapore, explained that the capital injection was to boost sentiment. Liao emphasized:

The central bank’s net capital injection may be an attempt to appease the market’s concerns about Evergrande. While the purpose may be to instill discipline, it also needs to prevent contagion to the real economy or other sectors.

Robert Kiyosaki: “China’s Evergrande Group Can’t Pay”

Evergrande is estimated to have sold millions of properties to China’s middle class since it was founded in 1996 by billionaire Xu Jiayin. Records further show that the real estate giant’s debt grew to more than $300 billion during this period.

Evergrande’s sales have plummeted recently, and construction workers have stopped working due to payment delays. Some people worry that if Evergrande fails, many properties will also be shaken. Report It further shows that Evergrande has failed to pay for the land in Anqing City, Anhui Province, China.

Robert Kiyosaki, author of “Rich Dad Poor Dad,” called Evergrande’s situation a “house of cards.”

“House of Cards Falls”, Kiyosaki Say this week. “The real estate collapse [the] stock market. China Evergrande Group can’t afford it.Property Valuation [is] Forged.will [the] Real estate crash spreads to [the] us? Yes. Great stock and real estate opportunities await savvy investors. A disaster for stupid investors,” he added.

tags in this story

$18.6 billion, $300 billion in debt, China, China real estate, China real estate, credit spread, default, default risk, economy, economic downturn, economy, Evergrande, Evergrande Group, Evergrande Real Estate Group, Hong Kong, People’s Bank of China, PBOC Capital Injection, China Real Estate Market, Rich Dad Poor Dad, Robert Kiyosaki, Wall Street Journal

What do you think of Chinese authorities telling local officials to prepare for the storm? What do you think of Robert Kiyosaki’s take on this situation? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,700 articles for News on the disruptive protocols emerging today.

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