tipper wrote:So what does that mean for us plebs Boon?
Ive seen it mentioned on and off for a while, but havent followed the story, and have no idea what it will all mean
We rely on Chinese economic growth for our economy to prosper, Evergrande is a property investor and if they fall over the Chinese property market would be hurt and that's one of their main economic drivers.
That also means China would slow down on buying iron ore from Australia so our commodity market would crash. They make more steel than anyone and over half of that ore they get from us.
Chinese property prices would fall, the middle class who ( not as much as they once did ) purchased items from Australia would feel the pinch and be less likely to spend.
Given their debt is all basically Chinese money ( not much $US involved ) the Chinese government may just help the banks absorb the debt, if not we might see our stock market seriously decline.
PAFC. Forever.
LOOK OUT, WE'RE COMING!