Evergrande’s capital is only ￥3.9 billion, but it leveraged ￥2 trillion of financing loans…. Did China just hit a brick wall?

Conclusion: Evergrande's capital is only ￥3.9 billion, but it leveraged ￥2 trillion of financing loans. Evergrande has no assets to pay off when it'll officially announce bankruptcy liquidation. The large amount of Evergrande dollar debt has actually become toilet paper. pic.twitter.com/vwtogy8fBx

— Bai, Xiaojun (@oriental_ghost) December 25, 2021

Evergrande News: China Constructiona, a central enterprise,the world's largest contractor, is in the debt crisis of Evergrande. It's 40billion RMB of commercial votes that Evergrande cannot redeem.https://t.co/es6AtgtOP6 pic.twitter.com/4GWAAaxqpp

— Bai, Xiaojun (@oriental_ghost) December 25, 2021

Well, they are just kicking the can at this point. Several US companies use Evergrande Bonds as collateral to meet their Margin Requirements. When bankruptcy is officially declared those Bonds can’t be used as collateral. These delays in downgrading to D is giving those US companies time to find other ways to provide Collateral if they can. Citadel, Susquehanna and Blackrock have been mentioned as having large numbers of Evergrande Bonds.

More updates on Evergrande:

China Evergrande must meet its target of delivering 39,000 units of apartments in December, says the firm's chairman https://t.co/puDQfbvD2J

— Bloomberg (@business) December 27, 2021

https://twitter.com/bhaskar1117/status/1475364460231413762

h/t Meg_119