China Opens up the Real Estate Taps, Governments to Increase Borrowing, Debt Managers Swarm

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China is reversing course on its deleveraging strategy, giving banks permission to resume lending to distressed real estate developers, and allowing local governments to resume the expansion of Local Government Finance Vehicles (LGFVs). Debt-restructuring specialists are swarming into China as record defaults are projected for the latter-half of 2022.

With China’s real estate sales plummeting and more defaults on the horizon, the People’s Bank of China met with banks and developers and agreed to allow further lending.

As China’s local governments are under increased pressure to build infrastructure, fiscal spending by any other means, China’s banks have been told to consider the expanding the creation of LGFVs.

Links:

Loan Curbs Eased for Distressed Developers: Evergrande Update:

China Covid Shock Sees Beijing Consider Risky Debt Option Again:

China hidden local government debt rises to over half of GDP at US$8.2 trillion, Goldman Sachs report says:

China’s Restructuring Firms Staff Up for Record Wave of Defaults:

China Home Sales Slump Most Since July as Lockdowns Hit:

Goldman Flags $8.2 Trillion Threat Worse Than China Evergrande:

China’s Local Land Sale Revenue Tumbles 27% in First Quarter:

Xi Calls for 'All Out' Infrastructure Push to Boost Economy:

China Bad-Debt Managers Move to Support Stressed Developers:

Bank of Canada’s Tiff Macklem doubles down on message that Canadians should prepare for higher interest rates:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners Road East
London, Ontario N5Z 3J1
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Mark great info as usual.
As i stated before on this channel Tiff will have no choice but to reverse course.

Relaxlifeisshort
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Gonna solve a bubble by creating a greater bubble

mrguiltyfool
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Go BIG and bang go Broke new CCP philosophy

JS-jhcy
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Mark, should i buy a home right now or wait? Do you think prices will go down significantly if/when mortgage rates go to 7%?

cocksandcobras