The New CS Board

[jumanji0881]

Tip of the iceberg -

Default Of Second Chinese Developer Sparks China Junk Bond Meltdown As Contagion Explodes : https://www.zerohedge.com/markets/default-second-chinese-developer-sparks-market-meltdown-contagion-explodes

Excerpts:
As Craig Botham, chief China economist at Pantheon Macroeconomics said, Fantasia’s missed payment “provides a clear sign that despite piecemeal bailouts of select Evergrande assets, property market stresses remain elevated." He added that "the rot is unlikely to stop here."

Looking ahead it only gets worse: fifteen of the country’s most stressed property developers will have $2.1 billion in bond payments due this month, according to calculations by Citi, comprised mostly of coupons. If they somehow manage to avoid mass defaults, it only gets tougher in January when the bill is set to double as principal payments come due, indicating market stress may reach another maximum around that time.

Finally, the worst news is that the market contagion is starting to spread rapidly to the broader property market: overnight China reported that Shenzhen second-hand home sales crashed 80% y/y to just 1,765 units in September, the first sub-2,000 print in 12 years. Should Beijing fail to arrest this crash in the real-estate market, then all bets are off.