Is Evergrande Defaulting? Is This The Reason For China’s War Against Bitcoin?

They apparently owe $300B. Is bankruptcy on the table? There’s a better question, though. Is Evergrande the only company in the sector with these kinds of debts? Or is Evergrande just a symptom of a widespread disease? Also, how does this relate to Bitcoin? Do we present a valid case in the following article? Is this “China’s Lehman moment,” as the pseudonymous Bitcoin analyst suggests?

What we know for sure is that “China’s major banks have been notified by the housing authority that Evergrande Group won’t be able to pay loan interest due Sept. 20,“ according to Reuters. Plan B’s comment sets the tone, and the video shows the intensity of the situation:

Check yesterday’s date. Well, on September 15th, 2008, Lehman Brothers filed for bankruptcy. Let’s quote Investopedia for a quick recapitulation.

"At the time of its collapse, Lehman was the fourth-largest investment bank in the United States with 25,000 employees worldwide. It had $639 billion in assets and $613 billion in liabilities. The bank became a symbol of the excesses of the 2007-08 Financial Crisis, engulfed by the subprime meltdown that swept through financial markets and cost an estimated $10 trillion in lost economic output.”

How Did China Evergrande Get Here?

A few days ago, on September 13, the South China Morning Post seemed cautiously optimistic about the situation. They explained the origin of the problem:

“Reports about missed payments to the contractors, attempts to reschedule payments on asset management products and the failure to sell the asset, and the Chinese financial regulators and the central bank encouraged to intervene to prevent a shock to the system.”

The big news at the time was that they had hired Houlihan Lokey and Hong Kong-based investment bank Admiralty Harbour Capital “to assess the capital structure, assess liquidity and explore ways to alleviate the current liquidity crisis."And you know what that means:

” Hiring such financial advisers means that Evergrande has reached a serious stage of listing what it has, what it owes and what are the best plans, " said Lung Siu-fung, an analyst at CCB International

Source:www.newsbtc.com