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China's Real Estate Sector Is Suffering

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EDITOR'S NOTE: Confounded Interest writes that China may be on the verge of spreading (another?) contagious virus around the world in the form of a massive real estate sector collapse. Earlier this week, Real estate companies Evergrande, Kaisa, Shimao, and Chinese Estates [fell] like a rock.” This started months ago when Evergrande announced it would default on its massive debt and was on the verge of collapse. That time is now here, and the entire Chinese real estate sector is failing. While that’s a massive problem in China, with today’s interconnected economy, there’s a real chance this crisis “washes ashore in the USA,” as Confounded Interest puts it. 

While the Chinese Wuhan virus (aka, the Fauci Flu) has plagued the world, another Chinese “export” is also suffering what is known as contagion: China’s real estate sector.

Real estate companies Evergrande, Kaisa, Shimao and Chinese Estates are falling like a rock today.

Photo: Confounded Interest

But it has been a steady decline since Q1 2021 except for Chinese Estates. But they have resumed their death dive.

Photo: Confounded Interest

On the debt side, Evergrande is down to 18.856 while Kaisa has lost less (but still quite a bit) and Shimao’s bond look almost like a good investment, relative to Kaisa and Evergrande. But they are all sucking wind. Maybe they all have the Fauci Flu?

Photo: Confounded Interest

Let’s see if this latest Chinese “export” washes ashore in the USA.

Originally posted on Confounded Interest.

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