Ten Stocks Affected by China's RE Market Cra

Insider Monkey/Yahoo headline: China Real Estate Market Crash: 10 Stocks at Risk


My note: I’ve been following the Chinese Real Estate Crash with fervor on youtube. If you want to catch up, these three paragraphs are a find intro synopsis of how China has enough empty housing for 90 Million people:

China is the second-largest economy in the world and a major force that has driven that economic growth is the country’s real estate sector, which makes up about one-third of its GDP. The China Evergrande Group (OTC:EGRNF) was founded in 1996 and grew to become one of the real estate giants in China and the world. The China Evergrande Group (OTC:EGNRF) grew its assets to about $150 billion in a decade after its launch and stacked on debt to develop over 1,300 projects spread across roughly 280 cities in China as of 2022. This debt grew to a figure of roughly $300 billion in April 2022, as reported by Reuters, and made The China Evergrande Group (OTC:EGRNF) the most indebted property developer in the world.

In August of 2020, the Chinese government passed regulations to limit the amount of debt property developers can acquire in China. The “three red lines” policy put constraints on three debt ratios that Chinese property developers had to follow to become eligible for taking on additional debt: liability-to-asset, debt-to-equity, and debt-to-assets. In October 2021, a majority of Chinese property developers violated the “three red lines” policy.

China’s real-estate bubble is on the verge of popping and being the second-largest economy in the world, this could have some seriously adverse effects on the global markets. Mortgage boycotts in China are alarming the Chinese government and banks. Although it is unclear as of now how many homebuyers have stopped paying their mortgages, S&P Global Ratings estimates that the value of boycotted mortgages may amount to $145 billion. Bloomberg reported that Chinese banks, the nation’s $56 trillion sector, can suffer up to $350 billion worth of mortgages being boycotted in a worst-case scenario.

Second part of the Insider Monkey story focuses on four names from the West - 3 of them miners.


The bottom five stocks suffering from China’s Market Crash has some Macro-Economic impact from some global companies from around the planet: $RIO $VALE $CAT $FCX