Mission Canceled or New Chinese Thriller

Mission Canceled or New Chinese ThrillerIn China, the spectre of Evergrande has appeared - another collapse of local developers. Major developer Country Garden failed to pay $22.5 million in coupons on two-dollar bonds on time. And this is only the first fact in the negative news feed.Last year, Country Garden was the top-selling home in China: its balance sheet far outperformed any surviving Chinese developer. And this year, among private developers, it is considered the most solid. Or rather, he was.However, just over $20 million doesn't sound like a big deal: Country Garden reportedly had $64 billion in revenue in 2022 and had more than $18 billion of free cash on its balance sheet. This would be enough to pay off debts in the next few years.Alas, Country Garden announced that it expects a net loss of $6.2-7.6 billion for the first half of the year due to falling sales and revaluation of assets. The Country Garden disaster will hit Chinese real estate far more than Evergrande. A new flash crash is now extremely undesirable, so the option of rescuing the troubled developer by the authorities is quite likely. But who knows what other secrets the Country Garden hides? After all, even a loss of $7 billion does not explain where the remaining $11 billion in cash went.Country Garden shares plunged 30% and individual bonds fell 70%.If the company pays off the bonds in the 30-day grace period, then on a rollback up, its shares can bring speculators a good profit. But the risk of such transactions is extremely high.If the authorities allow Country Garden to default, then we expect an avalanche of problems for companies that sold $ 230 billion worth of real estate-backed assets to investors last year. The financial giant Zhongzhi Enterprise Group (which controls CNY 1 trillion in assets), which is experiencing serious liquidity problems, has already entered the risk zone.So let's see what happens and don't risk it in vain.Profits to yall!#ForexChief #CountryGarden #Evergrande #forexnews #stocks #worldnews #Market