Suraj wrote:Further trolling will earn you a vacation from the site to contemplate your anti-proletariat splittist tendencies and perform re-education.
That poster 'Liu' will probably be jailed tomorrow by CCP for failing the party.
Suraj wrote:Further trolling will earn you a vacation from the site to contemplate your anti-proletariat splittist tendencies and perform re-education.
panduranghari wrote:Suraj wrote:Further trolling will earn you a vacation from the site to contemplate your anti-proletariat splittist tendencies and perform re-education.
That poster 'Liu' will probably be jailed tomorrow by CCP for failing the party.
Chinese banks have extended $16 billion in credit lines to shore up one of the country’s largest and most heavily indebted home builders, as pressure mounts on developers short of cash in a slumping property market.
Evergrande had total borrowings of 151.8 billion renminbi at the end of June, the most recent figure available. But that number did not include an additional 44.5 billion renminbi worth of perpetual bonds, so called because they have no fixed repayment date, which the company carries on its books as equity.
Evergrande Real Estate Group, one of the country's largest developers, will receive more than $16 billion in credit lines from Chinese banks, the New York Times reported Tuesday.
As prices fall and housing units remain empty, real estate developers are having trouble paying back debt. Evergrande, while one of China's biggest developers, has also racked up one of the highest levels of debt, much of it from foreign investors.
But according to analysts cited in the article, the billion-dollar lifeline is only a short-term solution as China's housing market continues its downward spiral.
According to the New York Times, Evergrande's debt reached about $24 billion by the end of June, plus another $7 billion in perpetual bonds marked as equity. Company sales last year reached about $20 billion.
Earlier this year, another prominent developer Kaisa Group Holdings defaulted with more than $10 billion in debt and had $2 billion in assets frozen.
The $16.2 billion in credit will come from Bank of China, Agricultural Bank of China, Postal Savings Bank of China, and China Minsheng Bank.
Bade wrote:^^ That is a bad deal in comparison with India. With $900k, one can buy anywhere between 4-5 homes in the luxury segment in a tier-3 city, and up to 10 homes if one goes a shade lower in luxury. Chinese are getting a very bad deal for the money being spent.
Bade wrote:^^ That is a bad deal in comparison with India. With $900k, one can buy anywhere between 4-5 homes in the luxury segment in a tier-3 city, and up to 10 homes if one goes a shade lower in luxury. Chinese are getting a very bad deal for the money being spent.
China’s steel and metals markets, a barometer of the world’s second-biggest economy, are “a lot worse than you think,” according to a Bloomberg Intelligence analyst who just completed a tour of the country.
What he saw: idle cranes, empty construction sites and half-finished, abandoned buildings in several cities. Conversations with executives reinforced the “gloomy” outlook.
“China’s metals demand is plummeting,” wrote Kenneth Hoffman, the metals analyst who spent a week traveling across the country, meeting with executives, traders, industry groups and analysts. “Demand is rapidly deteriorating as the government slows its infrastructure building and transforms into a consumer economy.”
The China Steel Profitability Index compiled by Bloomberg Intelligence barely rose in March, a time after the annual Lunar New Year when demand would usually surge, and so far this month has resumed its decline. Steel use this year is down 3.4 percent, after slumping as much as 4 percent in 2014, according to BI. It had steadily risen for more than a decade.
Prices for commodities from iron ore to coal are sinking as China’s leadership tries to steer the economy away from debt-fueled property investment and smokestack industries, embracing services and domestic-led consumption. At the same time, President Xi Jinping is stepping up efforts to combat pollution, further squeezing industry.
Economists are forecasting 7 percent growth in China for this year, in line with government targets and down from 7.4 percent in 2014, according to the median of 59 estimates compiled by Bloomberg. That’s about half the last decade’s peak rate of 14.2 percent in 2007.
The slowing steel and metals activity suggests the outlook could be grimmer.
“There is a big fear this is going to get worse before it gets better,” Hoffman said in an interview. “It’s as bad as the data looks, if not worse.”
When officials reopened the airport on the sparsely populated Dachangshan island off China's north-east coast after a $6 million refurbishment in 2008, they planned to welcome 42,000 passengers in 2010 and another 78,000 in 2015.
However, fewer than 4,000 passengers – or just a 10 a day - passed through its gates in 2013, data from China's civil aviation authority showed.
Since February last year, China has approved at least 1.8 trillion yuan ($290 billion) in new infrastructure projects to counter a slowing economy. The approvals come just as the full costs of the underused airports, expressways and stadiums built during the last spending binge are beginning to emerge.
While construction firms profited from the boom, it saddled China's provincial governments with $3 trillion worth of debt, with the most over-exuberant seeing their local economies weaken and become imbalanced towards the building sector.
The economy in Liaoning province, which includes Dachangshan island, was one of the slowest growing in China in 2014 - GDP expanded 5.8 percent, far undershooting its 9 percent target.
"There needs to be serious discussions over the economic rationality of large-scale engineering projects. Do we really need this many high-speed lines and airports?" said Lu Dadao, an academic at the Chinese Academy of Sciences.
A government official and economist estimated in November that China has wasted an approximate 42 trillion yuan on "ineffective investment" in the five years from 2009, with the problem worsening in the last two years.
AN AIRPORT, NO FLIGHTS
Despite its modern airport, finding a flight to Dachangshan island is not easy. Staff at Zhoushuizi International Airport in the port city of Dalian, the destination of the sole published route, said flights to the Changhai airport on Dachangshan have not operated for the last six months.
On a recent Wednesday morning, the airport's ticket counter was deserted apart from a female airport official. Still, its speckled grey marble floors were scrubbed shiny by a cleaning attendant, while the toilets were spotless.
"Call in two to three days to check if there's a flight," the official told Reuters. "The plane's under maintenance." A male colleague sat next to the baggage screening machine, head bent towards his knees, seemingly falling asleep.
Outside, there is little sign the small airport has had much impact on the island of about 30,000 inhabitants. Instead of shops or eateries, fishermen's homes surround the airport. Ferries are the preferred mode of transport to Dalian, locals said.
Undeterred, the Dalian government plans to spend 1.48 billion yuan ($238.9 million) this year to expand the airport to accommodate 250,000 by 2020, as part of its latest drive to spur the economy and to turn the fishing outpost into a holiday destination, according to local media reports.
Wu Hong, an official from Dalian Changhai County's publicity department, said the airport expansion was meant to keep up with the island's development, adding that it received 1.1 million tourists last year.
"In gross domestic product terms, none of this is bad. It generates growth, one way or another," said J Capital Research analyst Susannah Kroeber, who has been tracking China's infrastructure build-out since 2012.
"But is it useful and an efficient use of your resources? Absolutely not."
LARGEST, HIGHEST, LONGEST
Many of China's local governments set up corporations to obtain loans for massive infrastructure and real estate projects, skirting rules preventing direct borrowing while amassing a debt pile now seen as a key risk to the economy.
The results include the world's longest ocean-crossing bridge near the city of Qingdao and the highest railway track, which connects Qinghai province to Tibet. New districts built to house thousands have also been built, with some, such as Ordos in Inner Mongolia and Yujiapu in Tianjin, turning into ghost cities as China's residential property market slows.
While little official information is available on user numbers, China's expressways bled $10 billion in 2013 on toll revenue shortfalls. China Railway, which oversees the expansion of the world's longest railway network, is now 3.4 trillion yuan in debt, it said in September.
Still, there are concerns that it will be difficult to wean authorities off the addiction to over-building, particularly as signs emerge of fast-accelerating construction activity in China's inland western regions, where almost 40 percent of approved airport, railway and road projects are located.
Cement production is growing at its fastest rate in places such as Guizhou and Yunnan, two of China's poorest provinces that are in the southwest of the country, according to government data.
In northern China, where local governments are now dealing with overcapacity of steel and cement after their building booms, "you get a window into what happens after you build out pretty much all that you can possibly build," J Capital Research's Kroeber said.
"The early development of those trends...we think are starting to play out in other parts of the country now." ($1 = 6.1955 Chinese yuan)
Suraj wrote:We Traveled Across China and Returned Terrified for the EconomyChina’s steel and metals markets, a barometer of the world’s second-biggest economy, are “a lot worse than you think,” according to a Bloomberg Intelligence analyst who just completed a tour of the country.
What he saw: idle cranes, empty construction sites and half-finished, abandoned buildings in several cities. Conversations with executives reinforced the “gloomy” outlook.
“China’s metals demand is plummeting,” wrote Kenneth Hoffman, the metals analyst who spent a week traveling across the country, meeting with executives, traders, industry groups and analysts. “Demand is rapidly deteriorating as the government slows its infrastructure building and transforms into a consumer economy.”
The China Steel Profitability Index compiled by Bloomberg Intelligence barely rose in March, a time after the annual Lunar New Year when demand would usually surge, and so far this month has resumed its decline. Steel use this year is down 3.4 percent, after slumping as much as 4 percent in 2014, according to BI. It had steadily risen for more than a decade.
Prices for commodities from iron ore to coal are sinking as China’s leadership tries to steer the economy away from debt-fueled property investment and smokestack industries, embracing services and domestic-led consumption. At the same time, President Xi Jinping is stepping up efforts to combat pollution, further squeezing industry.
Economists are forecasting 7 percent growth in China for this year, in line with government targets and down from 7.4 percent in 2014, according to the median of 59 estimates compiled by Bloomberg. That’s about half the last decade’s peak rate of 14.2 percent in 2007.
The slowing steel and metals activity suggests the outlook could be grimmer.
“There is a big fear this is going to get worse before it gets better,” Hoffman said in an interview. “It’s as bad as the data looks, if not worse.”
"In gross domestic product terms, none of this is bad. It generates growth, one way or another," said J Capital Research analyst Susannah Kroeber, who has been tracking China's infrastructure build-out since 2012.
hanumadu wrote:From suraj's post"In gross domestic product terms, none of this is bad. It generates growth, one way or another," said J Capital Research analyst Susannah Kroeber, who has been tracking China's infrastructure build-out since 2012.
Seriously, she calls herself an analyst? If it was so simple, then wouldn't everybody do that to generate growth one way or the other?
hanumadu wrote:From suraj's post"In gross domestic product terms, none of this is bad. It generates growth, one way or another," said J Capital Research analyst Susannah Kroeber, who has been tracking China's infrastructure build-out since 2012.
Seriously, she calls herself an analyst? If it was so simple, then wouldn't everybody do that to generate growth one way or the other?
panduranghari wrote:hanumadu wrote:From suraj's post
Seriously, she calls herself an analyst? If it was so simple, then wouldn't everybody do that to generate growth one way or the other?
But it's true. What bit do you disagree with?
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