System and, of course, in china as well. I think what it means also is that amongst all of the various imbalances in the economy in china right now, the Property Sector might be the weight on the economy that lasts the longest simply because it is going to be such a slow slog in terms of restructuring this debt. We have seen pictures of unfinished buildings, families and even sometimes having to squat in those buildings because they cannot afford to pay the rent and pay their mortgage on these properties. What can china do to try to boost this up . Somehow the key to this issue right now is to complete Unfinished Projects because this will at least keep some of the financing flowing. As you mentioned, many, many projects are presold and the households that buy those properties, they make Mortgage Payments even if they are not able to take delivery of the product but as construction has come to a halt, they stop making those and that means no Income Accruing to the Property Developer th
Through the us legal system and of course in china as well. I think what it means also is that amongst all of the various imbalances in the economy in china right now, the property sector might be the weight on the economy that lasts the longest simply because it is going to be such a slow slog in terms of restructuring of this debt. We have seen pictures of unfinished buildings, families and even sometimes having to squat in those buildings because they cannot afford to pay the rent and pay their mortgage on these properties. What can china do to try to boost this up . Somehow the key to this issue right now is to complete Unfinished Projects because this will at least keep some of the financing flowing. As you mentioned, the many, many projects are presold and the households that buy those properties they make Mortgage Payments even if they are not able to take delivery of the product but as construction has come to a halt, they stop making those and that means no Income Accruing to
Bankruptcy protection in the us under chapter 15 which governs Foreign Companies in the us, protecting them from creditors that might want to sue them. You have probably heard of chapter 11. That typically governs American Companies but it is chapter 15. According to Court Filings these negotiations are ongoing in hong kong, canaanite and British Virgin islands. We have reached out to evergrande that have not had conversation. To those who have wondered if they have ever thought of evergrande before it is chinas huge property giant. They have about 1300 projects across 280 different cities in china and they invest in everything, not just property. They have an electric vehicle maker and a football club, but as i mentioned, 2021 was when we saw the Company Default on its debts, sending shockwaves across the Global Financial system and triggering a string of defaults from builders who owed money to evergrande or expected them to complete some contracts. We have seen 40 or the companies t
those properties they make mortgage payments even if they are not able to take delivery of the product but as construction has come to a halt, they stop making those and that means no income accruing to the property developer that helps them to continue the whole construction process and helps things grind to a halt. so there has to be a way to resolve this issue of a debt with the developers, find some way to get some liquidity in order to notjust start new projects but complete the project that have started and come to a halt. mortgage rates in the united states have hit their highest level in 21 years. on thursday the average interest rate on a fixed 30 year mortgage went up above 7%. a year ago that was around 5%. rising mortgage rates have seriously disrupted the us housing market and a mark a long term shift in one
mortgage rates in the us have hit their highest level in 21 years. on thursday, the average interest rate on a fixed 30 year mortgage went above 7%. a year ago it was at around 5%. rising mortgage rates have seriously disrupted the us housing market, and mark a long term shift in one of the biggest underlying forces in the us economy. michelle fluery has more from new york. fought the past year, economists have been fretting about the end of the low rate economy in the united states and its in housing, particularly the mortgage market, where rising interest rates directly hit home owners, which is to say many us consumers and voters. when mortgage rates rise sharply and i average they are now at over 7%, and the highest since 2002, then the housing market, well, it tends to slow down. it suddenly cost more to borrow and people who already have a