Chinese Economics Thread
- Thread starter Norfolk
- Start date
His company said "no guarantee that we have the funds to meet the debt repayments" so the local government has "summoned" (for tea) the chairman of the company so that they can "convince" him that his company can actually pay its debts
Its like magic, just one "summon" and problems suddenly go away
He's gonna get Peng Shuaied
As in, have nothing happen to him, but adopt a low public profile, and have foreign media run a circus of concern trolling because they feel entitled to knowing his constant whereabouts and want to use him as a vector to portray the political system in a negative light, combined with deliberate falsification of translations and gaslighting?
If so, I doubt it, because this guy is definitely going to have actual consequences leveraged against him.
P
From what I remember, his net worth is $8 billion and he has already started listing many private aircrafts, yachts, mansions etc for up to sale in order to raise cash lol
The only question is who will be faster, Evergrande's creditors wanting their money back or the chairman managing to sell hard assets fast enough to raise money
I have to admit though, that as an ordinary person, I am quite enjoying the process of the rich getting punished.
As noted in previous posts, the chairman needs to find money or otherwise real (bad) consequences will come on his way.
From what I remember, his net worth is $8 billion and he has already started listing many private aircrafts, yachts, mansions etc for up to sale in order to raise cash lol
The only question is who will be faster, Evergrande's creditors wanting their money back or the chairman managing to sell hard assets fast enough to raise money
I have to admit though, that as an ordinary person, I am quite enjoying the process of the rich getting punished.
Well, it's more complicated.
I see it as a win-win for the Chinese companies and their US investors. Without the US fund, these companies might have been less successful.
It's a fact that the Chinese stock markets are not as big and resourceful as the US ones for raising funds. Not to mention the loose (I'd even call it scandlous) qualitification process of the Chinese markets (except SEHK) until now. Qualified for listing in the US markets should still be seen as a testimony for a company's financial soundess and an achievement by its management.
China still has a lot to learn from the best in this area.
On the other hand, there is no doubt greed and arrogance in the play in some cases, like Didi who had gone too far. Yes these companies should be ashamed. I have no sympathy for them either.
In the end, it is a lose-lose to both Chinese companies and the US investors. The US knew it but thinks it is going to hurt China more.
AFAIK, its hard to believe that if the US regulators cant get acess to the financial records of chinese companies,.
Are you saying the US regulators have not been able to access the financial records of the Chinese companies listed in the US markets?
How did these companies pass their qualification in the first place then?
They are being even more vigilant after episodes such as "Luckin Coffee"
its a interesting read which was brought to attention of the reulators by "Muddy Waters" an investment research firm and short seller who leaked that "Luckin Coffee" had
" fabricated performance through inflated revenue, coupon sales, and redemptions. The report questioned Luckin’s practices and revealed the falsified sales volume. The report showed that Luckin marked up its sales volume by 69% in the third quarter of 2019 and 88% in the fourth quarter of the same year.[8] Further, the report raised questions about the inflated revenue, false accounting practices, and abuse of senior management positions. The report also questioned the extraordinary market share of coffee sales in China that Luckin claimed, given most caffeine intake in China comes from tea, as in most countries in Asia.[9] Muddy Waters said it decided the share price of Luckin would drop and had sold short Luckin’s shares after releasing the report to the public.[10]"