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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (7980)	9/22/2021 5:01:57 AM
From: elmatador	Read Replies (1) \| Respond to of 13784

Nothing to worry about. The CCP has been changing China's economy -case in point, regulation of the real estate sector- and is ready to deal with the consequences. Three red lines and China real estate – in sixty seconds China’s new ‘three red lines’ policies for the real estate sector will likely drive a wave of credit reratings for developers and open up opportunities for bond investors; In short, the policies amount to forced deleveraging to improve financial health for the real estate sector; The government is moving to address debt build-up in the sector and we have high confidence in the scope of these policies; Future access to financing will be predicated on developers’ adherence to strict criteria including liability to asset ratio (excluding advance receipts) of less than 70%, net gearing ratio of less than 100%, and cash to short-term debt ratios of more than 1x. https://www.ubs.com/global/en/asset-management/insights/china/2021/china-three-red-lines.html?fbclid=IwAR2R43SXJCOJ1r6mVqDce4n_-22CmooRyK9PutTa96o7K5NmS8M9e9DmiE4 As Evergrande broke all the three red lines, they are dead. It is just a matter of the CCP dealing with the mayhem.