Mass Arrests Made at China’s Teetering Evergrande Property Giant | Chinese police descended upon the financial services arm of doomed property giant Evergrande on Saturday night, arresting numerous employees at the company’s Shenzhen offices, possibly including General Manager Du Liang.
... The Evergrande Group said that Du and a half-dozen other managers were “reprimanded” for cashing out their own investments and were ordered to return the money. ... Shares in the China Evergrande Group plunged by up to 25 percent in trading on Monday after the Shenzhen arrests were announced.
The CCP controls the economy, and the economy is tanking, things do not look good for Xi, and he will try to hold onto power somehow.
Things are about to get bumpy.
If I was Taiwan, I'd be watching this very closely.
Feels like this thing has been going bankrupt for over two years.
It's amazing what governments and corporations can do when everything is rigged.
I totally agree. Seems like forever. Isn't their social credit score way below zero at this point?
u/#badsocial
That seems to be the idea
It was never real. They built (or partially built) enormous residential complexes in the middle of nowhere and promoted them like timeshares with political implications. Nobody lives in them. Nobody ever will. If your uncle is a “party boss” and suggests you invest, well let’s just say you have an offer you can’t refuse. It’s all coming apart there. The whole economy is a sham. Ordinary people have lost confidence in it.
And Xi has purged any potential rivals over several years. There’s no backup plan. Demographically they don’t look viable, even short term. The “Forbidden City” flooded waist deep this year. Not a good omen.
I just watched the big short yesterday and I now understand how cooking the books can actually buy you some time. The rule of thumb should be to assume that books WILL be cooked. In the film, banks and credit agencies refused to downgrade the grade of their shitty real estate bonds until the effects became unavoidable and obvious. This seems to be able to buy about 1.5yrs beyond obvious financial markers. I have to assume this is exactly what the us and Chinese markets are doing, which is why I think this fall the US market will crash (Sept/October) and why I think the Chinese market will probably fail next spring, leading to a Taiwan offensive next November. I'm no expert on this stuff, but I know enough to realize our market is fake and that can only carry on so long.