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Evergrande effect locally
cyruskulei
#1 Posted : Wednesday, September 22, 2021 9:46:12 AM
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Joined: 3/9/2010
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Location: kenya
Just watching and listening to bloomberg tv comments on Chinas Evergrande default and makes me scared. Iam the only one?
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VituVingiSana
#2 Posted : Wednesday, September 22, 2021 11:06:55 AM
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Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
cyruskulei wrote:
Just watching and listening to bloomberg tv comments on Chinas Evergrande default and makes me scared. Iam the only one?

Will it be felt in any significant way in Kenya?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
My 2 cents
#3 Posted : Wednesday, September 22, 2021 6:33:47 PM
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Joined: 6/2/2010
Posts: 692
It is the reason for the sell off this week. Global markets, Kenya included.

https://www.businessdail...y-loss-since-may-3558332
VituVingiSana
#4 Posted : Thursday, September 23, 2021 10:06:45 AM
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Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
My 2 cents wrote:
It is the reason for the sell off this week. Global markets, Kenya included.

https://www.businessdail...-loss-since-may-3558332
Probably short-term for Kenya since Chinese investors aren't huge in the NSE.

I think what happens with Saf is key to the NSE Index.

Kenya has many other major problems that overshadow the effects of Evergrande.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#5 Posted : Thursday, September 23, 2021 11:07:50 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
VituVingiSana wrote:
My 2 cents wrote:
It is the reason for the sell off this week. Global markets, Kenya included.

https://www.businessdail...-loss-since-may-3558332
Probably short-term for Kenya since Chinese investors aren't huge in the NSE.

I think what happens with Saf is key to the NSE Index.

Kenya has many other major problems that overshadow the effects of Evergrande.


Like wheelbarrow movement
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
jamplu
#6 Posted : Friday, September 24, 2021 12:36:38 PM
Rank: Veteran


Joined: 3/25/2010
Posts: 939
Location: Nai
cyruskulei wrote:
Just watching and listening to bloomberg tv comments on Chinas Evergrande default and makes me scared. Iam the only one?


not sure there is anything to be scared of but you never know!!

but Evergrande was also involved in similar high yield product like cyton d'oh! they had already started defaulting early last year.


lets wait and see how this ends.


My 2 cents
#7 Posted : Friday, September 24, 2021 1:57:22 PM
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Joined: 6/2/2010
Posts: 692
It most likely will have an effect on the price of commercial bonds issued by companies in emerging and developing markets. Evergrandes bonds are now trading at 30 cents to the dollar. Other Chinese home builders are also more or less heavily indebted. If international institutional investors for a moment in time deem emerging and developing markets as risky, we shall see an outflow of international investors. They will be selling safaricom, equity, KCB, EABL and Coop. These are the ones they mainly hold, so watch the price action on these 5.
Ericsson
#8 Posted : Friday, September 24, 2021 2:37:59 PM
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Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
Evergrande has missed a $83.5 million coupon payment due yesterday (Thursday 23 September) for a $2bn onshore bond.It has 30 days grace period to make the payment.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#9 Posted : Friday, September 24, 2021 2:39:17 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
My 2 cents wrote:
It most likely will have an effect on the price of commercial bonds issued by companies in emerging and developing markets. Evergrandes bonds are now trading at 30 cents to the dollar. Other Chinese home builders are also more or less heavily indebted. If international institutional investors for a moment in time deem emerging and developing markets as risky, we shall see an outflow of international investors. They will be selling safaricom, equity, KCB, EABL and Coop. These are the ones they mainly hold, so watch the price action on these 5.


Time horizon to watch the price action.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
KulaRaha
#10 Posted : Friday, September 24, 2021 2:40:46 PM
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Joined: 7/26/2007
Posts: 6,510
Ericsson wrote:
Evergrande has missed a $83.5 million coupon payment due yesterday (Thursday 23 September) for a $2bn onshore bond.It has 30 days grace period to make the payment.


Even if they pay this one, chances of being unable to pay the next are certain.
Business opportunities are like buses,there's always another one coming
My 2 cents
#11 Posted : Friday, September 24, 2021 8:54:17 PM
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Joined: 6/2/2010
Posts: 692
Interesting fact – Evergrande’s total debt $300 Billion. Our NSE total market cap $25 Billion. Goes to show just how much Evergrande is indebted or conversely just how tiny our NSE is.
Ericsson
#12 Posted : Friday, September 24, 2021 11:38:47 PM
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Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
KulaRaha wrote:
Ericsson wrote:
Evergrande has missed a $83.5 million coupon payment due yesterday (Thursday 23 September) for a $2bn onshore bond.It has 30 days grace period to make the payment.


Even if they pay this one, chances of being unable to pay the next are certain.


There is a $47.5 million coupon payment due next week.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#13 Posted : Friday, September 24, 2021 11:40:54 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
My 2 cents wrote:
Interesting fact – Evergrande’s total debt $300 Billion. Our NSE total market cap $25 Billion. Goes to show just how much Evergrande is indebted or conversely just how tiny our NSE is.

Our economy is tiny and our revenue collections equally tiny,but we are borrowing as if we are competing with the big boys.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#14 Posted : Wednesday, September 29, 2021 9:51:46 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
Evergrande to sell $1.5bn stake in Shengjing bank to raise funds for reducing its liabilities
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#15 Posted : Friday, October 22, 2021 5:19:25 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,067
Location: NAIROBI
https://www.cnbc.com/202...ment-chinese-media.html

Evergrande makes an interest payment for an offshore bond that was due in September to beat the 30 day deadline that expires on October 23.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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