Please enable JavaScript.
Coggle requires JavaScript to display documents.
China's Economy : Will the Bubble burst?, QCQRH6YGMRMCBM6VJDU5XHCT5A,…
China's Economy : Will the Bubble burst?
Evergrande
:question: About company
Chinese real estate developer
One of the China's biggest property developers
In recents day :
Complaints
Small investors
Unpaid suppliers
People unhappy that they purchase haven't been completed
:!: Borrowed lots of money
Offshore
:!?: If Evergrande drags down
People worried if Chinese economy could develop at high speed
Investors
More bullish
Find a way to contain the fallout
Less certain
That this can be safely diffused
💰Economy
The property industry are 25% of China total economy
Investors lose confidence in Emerging Markets
Reducing debt
🪙Company promoise
Reimburse
Resume construction
Danke Apartment
Mode of operation
Danke platform
require tenants to pay a colossal amount of rent
use that money to fund its expansion
some platforms spend these payments on the stock market
Business Model
rents flats from landlords ,renovates them ,then sublets
crisis
demand falls short to meet supply
a major health crisis
Urbanization
rental market heated
benefit
rapid expansion
have a lot of money
Fact
Landlord
Being danger
If guest are violent tendency
Guest
No one protect their interests
colossal amount of rent
landlord is threatening to change the lock
Consortium
With huge sum of cash, it quickly expanded
Threatening the guest
Government
can enforce regulations on such spending
not to further stifle these platforms' liquidity
Pandemic
Stuggle of Chinese Rental
Depleting Revenue
Danke Apartment
No Accountability
Lanlord didnt received the right info
Business Model
Buy high , Sell Low
Heavily Rely on Cash
Why these rental platform struggle cash flow
Invest in irrelevant business like Stock
Future Action
Bankrupt
When they are no run way out
Government set Policy
Government enforce regulations on such spending
Sort out the Contract
To please the Client and Landlord (Value added for Platform Business)
Practice Credit rating system
Heavily rely on cash
Reconsider Business model
Quick Expansion but challenge for Sustainable
