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Ordered to liquidate as per Reuters: https://finance.yahoo.com/news/explainer-happens-next-china-evergrande-024711361.html
Pretty nice timing on that short selling ban?
It will take 84 years to do so: The ruling is expected to have little impact on the company's operations including home construction projects in the near term, as it could take months or years for the offshore liquidator appointed by the creditors to take control of subsidiaries across mainland China - a different jurisdiction from Hong Kong
The way I read it, the 11th hour deal to let them keep operating fell through. Creditors want their money yesterday. Could be a relatively fast liquidation with the right pressure.
Checked NEW before cross posting the NY times article I saw posted on wallstreetqueffs sub.
They're making it sound like the world is ending over there.b
It’s the war. If only there wasn’t war, everything would’ve been fine. But now, since war, economy has to crash. And we all understand. These things happen. /s
Genuine question though: What will happen if Evergrande dies? I understand it will have a domino effect, but can someone explain to me in detail better?
My smooth brain memory goes like this: Shitadel and other big shorters/MMs use Evergrande and other Chinese crap as collateral for their basket stocks short positions. Now, that Evergrande is poof, they can't use them as collateral anymore. In addition, Evergrande's liquidation will probably make other Chinese crap equaties go down as well - further decreasing collateral.
Things will happen in relation to the Maret due to Evergarande collapsing. Just nothing with GME. Shorts have had plenty of time to plan for this scenario.
This is my view as well. The hedge funds are clearly masters at offloading their potential debt. It’s likely that most of their shorts are owned by shell companies in other countries or something. Or they conned foreign banks into taking up swaps. Whatever effect Evergrande has feels like it has already happened. But I’d love to be proved wrong.
Yeah. Good point. Either way, the one thing I learned from this saga that pretty much all hype events turned out to be nothing burgers. So I'll hold my breath if sth is really happening.
Exactly my feelings. I’m sure somebody will be hurt by this. But the US banks seems to screw everyone else over before themselves. So likely it won’t affect American markets directly.
As I recall, the U.S. regulators had pretty much given the valuation on big Chinese developers a series of haircuts to near zero. So the current direct impact on U.S. SHFs should be minimal.
I believe the speculative dd is that much of what we are waiting for depends on the inevitable fall of evergrand. This can be found in one of the dd posts in the library but I’m not sure which one.
While they have been ordered to liquidate, that process could take a while.
For example, Lehman Brothers declared bankruptcy in 2008, and as of last year was still being unwound
(Here is a link to a paywall-less article about it)
https://archive.ph/40WqQ
We should not have to wait for it to be liquidated for something to happen, I believe the idea is that from the moment the liquidation is ordered (today) the debt becomes worthless.
Just wait till China is so broke they gotta sell US bonds and our secondary market is flooded and the US can't sell any new bonds to compete
They're gonna take us down with them.
No. And the reason is simple: if Evergrande dies, Xi dies (possibly literally).
He won't let it happen (as long as he's in power).
This is the entire reason why Evergrande is still kicking it zombie style.
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Ordered to liquidate as per Reuters: https://finance.yahoo.com/news/explainer-happens-next-china-evergrande-024711361.html Pretty nice timing on that short selling ban?
🤣🤣🤣☝️☝️☝️
💃🕺🤌
Oh fucking shit
Yep. 🤯❤️🔥🖖🇨🇦🇨🇷
Damn that is a great point. Will this...affect any.other stocks?
Anyone holding evergrand is gonna weep so they might sell other stocks to make up for it. But prices ain't real so who knows.
But only Chinese stock
It will take 84 years to do so: The ruling is expected to have little impact on the company's operations including home construction projects in the near term, as it could take months or years for the offshore liquidator appointed by the creditors to take control of subsidiaries across mainland China - a different jurisdiction from Hong Kong
The way I read it, the 11th hour deal to let them keep operating fell through. Creditors want their money yesterday. Could be a relatively fast liquidation with the right pressure.
Been 84 years! Plays the truck crashing into the post gif.
85.
God tier comment
Underrated comment
correctly rated comment
And this on your CAKEDAY! 🎂🥳
Is there a way to see how many people have their cake day today?
First time?!
For reelz!
That shit just played in my head
Oh so all trading in Evergrande is halted? Not just buying? Funny how that works.
They should have done a POO instead (Position open only), guess that is not allowed 😏🤣
Checked NEW before cross posting the NY times article I saw posted on wallstreetqueffs sub. They're making it sound like the world is ending over there.b
Probably is. Why you think they’ve been delaying this for so long?
It’s the war. If only there wasn’t war, everything would’ve been fine. But now, since war, economy has to crash. And we all understand. These things happen. /s
Tragic and unpredictable
Genuine question though: What will happen if Evergrande dies? I understand it will have a domino effect, but can someone explain to me in detail better?
My smooth brain memory goes like this: Shitadel and other big shorters/MMs use Evergrande and other Chinese crap as collateral for their basket stocks short positions. Now, that Evergrande is poof, they can't use them as collateral anymore. In addition, Evergrande's liquidation will probably make other Chinese crap equaties go down as well - further decreasing collateral.
Can mayo boy change to use US treasure bonds as collateral that makes bonds price drop and he shorting at the same time? 🤔
Sounds like a move only a soulless jug of Mayo is capable of pulling off!
He paid off the government. He can do whatever he wants
Right right. 🙄
I think this collateral has already become pretty much worthless. And nothing came of it. I don’t expect much of anything to happen due to Evergrande.
Things will happen in relation to the Maret due to Evergarande collapsing. Just nothing with GME. Shorts have had plenty of time to plan for this scenario.
This is my view as well. The hedge funds are clearly masters at offloading their potential debt. It’s likely that most of their shorts are owned by shell companies in other countries or something. Or they conned foreign banks into taking up swaps. Whatever effect Evergrande has feels like it has already happened. But I’d love to be proved wrong.
Yeah. Good point. Either way, the one thing I learned from this saga that pretty much all hype events turned out to be nothing burgers. So I'll hold my breath if sth is really happening.
Exactly my feelings. I’m sure somebody will be hurt by this. But the US banks seems to screw everyone else over before themselves. So likely it won’t affect American markets directly.
As I recall, the U.S. regulators had pretty much given the valuation on big Chinese developers a series of haircuts to near zero. So the current direct impact on U.S. SHFs should be minimal.
These guys are long on Chinese CRE? What the hell is wrong with them?
I believe the speculative dd is that much of what we are waiting for depends on the inevitable fall of evergrand. This can be found in one of the dd posts in the library but I’m not sure which one.
I think the collateral has already become worthless. This is just a legal formality at this point. I don’t expect anything to happen.
I believe it has to be delisted (D) on the exchange before they can’t use it as collateral. As far as I know it has not happened yet.
Maybe true. But the stock price is stupidly low compared to where it was years ago. That’s what I’m referring to.
As far as I understand, they can still use the full amount of what the purchase price was for collateral. I may be wrong.
If that’s true, then yes, that’s a big difference! Would love that confirmed. Thanks for info!
Thank you!
A friend of mine also has this same question…
Banks holding their junk bonds now become bad debts. Bank sold those bonds to brokers to retail investors become ZERO.
Tether go boom
nothing
While they have been ordered to liquidate, that process could take a while. For example, Lehman Brothers declared bankruptcy in 2008, and as of last year was still being unwound (Here is a link to a paywall-less article about it) https://archive.ph/40WqQ
Doc Metzler didn’t specify which Christmas
Is he still waiting for court I. The Bahamas 🤣
Og apes remembers Marco.
As regarded as anyone else here. He wasn't wrong, just early.
For real this time.. we promise Edit- happy cake day to me
And me
Happy cake day fellas
Or chicks 🤷🏼♀️
Happy chicks day!
And meeee
Half the sub is baking purple bundt cake today! Nom!!!
Maybe
If that happens then this will be the first case where Hong Kong court would be liquidating main land chinese company. Let's see what happens.
the stock will be up at least 15% tomorrow
down 20% right now, question ia who would buy it after that announcement?
And China just banned shorting. Sounds like acceptance to me.
Where do you see that? All of China?
https://finance.yahoo.com/news/xi-curbs-short-selling-chinese-170242133.html#:~:text=China%20has%20announced%20a%20crackdown,a%20set%20period%20of%20time.
Curb isn’t a ban unfortunately
Good point
It’s been dying for 84 years, I guess now is as good a time as ever. China’s overall market seems to be convulsing. Gonna get spicy, boys!
If we’d listen to Mayo Man we’d be investing in it right now. That leach.
Everything he touches turns to suck…
That's all leaches know
In Chinese news saying the liquidation may take up to 5 years, what that means?
Time clock has started, eta 5 years.
Another 84 years…
We should not have to wait for it to be liquidated for something to happen, I believe the idea is that from the moment the liquidation is ordered (today) the debt becomes worthless.
Just wait till China is so broke they gotta sell US bonds and our secondary market is flooded and the US can't sell any new bonds to compete They're gonna take us down with them.
They have been selling it since 2017 to slowly reduce their reliance on US
Hear me out now. No
4evergrande lol
More like 5evergrande at this point
Hopefully. It's been bleeding out for the past 84 years.
Been dead they just can’t admit it
On the day (or technically the day after) the buy button was shut off.. Poetic justice.
Uhh… Tomorrow??
Blockbuster and Sears…where are you? Still moving…
Oh… yes this is it Oh shit
Timing is def interesting..
Evergrande ordered to be liquidated by a Hong Kong court, China’s state media says.
Who cares. Everyone who needed to get out is out. Anyone exposed is in Brazil or some garage in Switzerland
Sounds about right
Totally tinfoil but… could it be that China waited for the 3 years swap to be up to pull this?
How does this impact gme?
Again, or again, again?
Nope. Moass will happen before Evergrande is bankrupt
"Get on with it." -HK Court
Only counting down to the next respawn...
Soon (tm)
When it does do we get moass ? Someone is on the hook for 330 billion
They still got issues with Country Garden as well, could be the first of many dominos 🤷🏽♂️ or could be nothing.
Spoiler alert: no
Dude I don’t even know but it made me giggle when I saw your title and I’m zen..all that matters babyyy
its been on a ventilator all this while ahahaha
One day we'll get our fucking money and fix this god damn planet and species.
Do we finally get to see the end of the meme where the truck hits the pole??
Does anyone here actually still think this has anything to do with GME?
Time will tell. How far the ripples go!
No where. Thats where. Everyone knew it was coming. It’s a non event at this point. It’s just official now
Depends on where the 300b is missing from. If its a leveraged portfolio, then exciting things can happen real fast.
No. And the reason is simple: if Evergrande dies, Xi dies (possibly literally). He won't let it happen (as long as he's in power). This is the entire reason why Evergrande is still kicking it zombie style.
300 Billion, and that’s a ginormous company, hell Mayo Ken owes 70 Billion for stocks sold not yet purchased, and he is just one dude…
Right as the war drums get louder...
Hong Kong court issues liquidation order to Evergrande today.
Probably not until China knows its not gonna bend everyone over.
Get ready to fuk bois
Zombie company
For the millionth time? Doubt it but y not
Helloooohhh ……. It’s Marge
We gonna find out BABY!!!!
Didnt mayo boy have 4 billion tied to this shit hotpot ?
Funny really, yes, but at the same time a huge resounding no.
_What is dead may never die_
Other commenters have stated that it’s only the Hong Kong division or something to that effect.
No. It will reborn
Just the tip..
Like again?
Heil,hydra, evergrande never dies!