[NTD News October 07, 2021 Beijing time]US Secretary of State Blincoln made his first voice on the Evergrande incident on the 6th, urging Beijing to take “responsible” actions to deal with the possible impact of the Evergrande debt crisis. Experts say that many funds in the United States have purchased Evergrande stocks and bonds, and Brinken has come forward to shout, as if Evergrande’s impact on the United States has been considerable.
Brinken expressed his opinion on Evergrande for the first time
On October 6, Brinken said in an interview with Bloomberg Television in Paris that the United States hopes that Beijing will take “responsible” actions against the financial crisis brought about by Evergrande.
He said, “China alone has the right to make relevant economic decisions, but we also know that China’s economic behavior will have a profound impact on the world, because the economies of all our countries are so inseparable.”
“Therefore, when it comes to matters that may have a significant impact on the Chinese economy, we expect China to take responsible actions and effectively respond to any challenges.” Brinken said.
This is the first time that a US government official has expressed views on the Evergrande debt crisis, which has aroused public concern.
Xie Tian: Evergrande’s impact on the United States is considerable
Xie Tian, Chair Professor of the Aiken School of Business at the University of South Carolina, told NTDTV, “Blinken spoke directly to Beijing and asked them to act responsibly to deal with the impact of Evergrande’s debt, as if it had a considerable impact on the United States. .”
The Chinese real estate giant Evergrande Group has a debt of US$305 billion. In September, two offshore bond interest payments of US$47.5 million and US$83.5 million have not been paid, and no debt repayment plan has been proposed. There are still 8 offshore bonds and 1 onshore bond due before the end of the year.
Evergrande’s debt crisis makes people worry that once Evergrande is insolvent or goes bankrupt, it will have an impact and impact on China and even the global finance and economy.
Professor Xie Tian said, “Many funds and retirement funds in the United States have purchased Evergrande stocks and some Chinese concept stocks. For example, the manager of the California civil service pension, who was a Chinese manager at the time, bought a lot of Chinese concept stocks. There are other pensions, including those teachers’ unions, these workers’ unions, and many government pensions. They also bought a lot of Chinese concept stocks, including Evergrande’s stocks and bonds.”
If Evergrande goes bankrupt, its stocks will become worthless, and these bonds may not be repayable. Xie Tian said, “This has a great impact on these pensions and funds in the United States.”
Fed Chairman: Evergrande may affect global finance
Since the beginning of this year, Evergrande Group’s stock has plummeted by 80%, and Evergrande Property has fallen by 43%. On September 20, Evergrande’s concerns led to a collective decline in Asian stock markets, European and American stock markets, among which the Hong Kong stock market fell across the board, plummeting 821 points, or 3.3%.
The following day, White House spokesperson Shaqi tried to downplay the White House’s concerns about Evergrande, calling it “a company headquartered in China, and most of its activities are concentrated in China.”
But she added, “We have been tracking the global market…including assessing any risks facing the U.S. economy and being ready to respond appropriately if necessary.”
On September 22, the chairman of the U.S. Federal Reserve, Jerome. Powell (Jerome Powell) said at the press conference that the debt dilemma of Evergrande Group seems to be a unique problem in China, and similar situations will not occur in the US industry.
He said that the direct risk of the United States facing Evergrande debt is small, and the risk of large Chinese banks is not large, but the incident may affect global financial conditions.
Today, U.S. Secretary of State Blincol rarely speaks about the Evergrande incident, and it seems that the Evergrande crisis has spread to the United States.
Professor Xie Tian analyzed that Evergrande may not have any influence on Bank of America and Wall Street, but it has a great influence on some funds in the United States. “It may be that more U.S. officials have made some full assessments of some U.S. pensions or the positions of other funds in Evergrande before this concern will appear.”
“Not only some funds in the United States, there are also funds in other countries buying Evergrande stocks and bonds, which deceived many people.” Xie Tian said, now they see that they can’t get back the money they invested in Evergrande, so Inform the US government to ask the US government to put pressure on Beijing, “In other words, let the Chinese Communist government take it (debt) on its back. But the Chinese Communist government, perhaps Beijing itself does not have this ability.”
The Wall Street Journal reported on September 23 that the authorities are asking local governments to prepare for the possible collapse of Evergrande, which shows that the CCP is unwilling to bail out this heavily indebted real estate developer.
According to people familiar with the matter, the primary task of the local government is to prevent social unrest that may be caused by the collapse of Evergrande.
(Reporter Luo Tingting Comprehensive Report / Chief Editor: Wen Hui)
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