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China's Economy - Coggle Diagram
China's Economy
Leasing Service Woes:Danke Apartment
Business strategy
Buy high and sell low
They pay landlords a higher premium than the market average
Leasing to tenants at a low price.
It's not sustainable
Attract clients and increase their market share
Crisis
Four-corner relationship
Landlord
Danke cannot pay rent to the landlords
Tenant
Be kicked into the street by their landlords
Bank
Danke
What cause problems
Internet companies
brutal expansion
lack of social responsibility and professionalism
the interests of the landlord and the tenant conflict
Debt problem
landlord not received income， the tenant who has paid the rent is still valid
The pandemic has impact on their economy
problem with the capital chain
The tenant cannot pay the rent
Renovate a new house
How do they work?
Danke signs a contract with the owner and obtains their sublet right
They replace the owners to collect rent
Danke will pay the rent to the landlord by monthly or quarterly payment.
Evergrande
property developers
is a big chunk of China's economy
25% of China's Economy comes from the property sector
one of the biggest indebted company
cause
bought lots of lands
effect
other companies that cooperate with Evergrande
if Evergrande default
a credit crunch
crisis
what
borrow money
banks
to build sttructures
pre-selling unfinished apartment
investors
how
Local goverment
will help if
social arrest spread
financial market being roid
Evergrande's chairman
vowed to push through the pain
why
Lost 80% of shares values
Lock downs
New rules that barred Evergrande from taking new debt
Ripple effect
International
Global Investors
Importing country
Exporting country
Knock-on effects
Lehman Brothers
Financial crisis of 2007–2008
National
Government
Company
Design company
Housing marketing
Financial institutions
Bank
Construction companies
People
Down payment
Bankrupt
Insufficient cash flow