Tag: Evergrande

Evergrande Gets Suspended from Trading in Hong Kong

Evergrande halts trading in Hong Kong
Evergrande halts trading in Hong Kong

(Bloomberg) China Evergrande Group was suspended from trading in Hong Kong pending an announcement containing “insider information”.

The developer is said to be holding a call this week to brief investors on its debt restructuring plan.

Here we have yet again another global suspension that may potentially affect the entire markets and we’re going to discuss it today.

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Welcome to Franknez.com – Evergrande is being suspended from trading in Hong Kong as investors push for their money. This is crazy!

Let’s dive right into it!

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Hong Kong halts trading of Evergrande

Hong Kong Stock Market
Hong Kong Stock Market

Evergrande and its other units suspended stock trading in Hong Kong (3/21).

The company’s offshore bonds were also halted in the process.

Evergrande has been at the center of a crisis among Chinese property developers following Beijing’s crackdown on borrowing.

It said in January that it aimed to present a preliminary restructuring proposal in the next six months.

Evergrande has been on the brink of default for months now since last year.

Its bondholders approved a payment plan regarding overdue yuan-bond interest, so investors aren’t giving up.

Massive selloff of Nanjing unit

Evergrande Group’s onshore unit will sell its 30% stake in Nanjing property company for an undisclosed sum.

The Nanjing property company, focused on valuation and management services, was set up in June 2020 with registered capital of 66.7 million yuan.

Chinese property firms listed in Hong Kong face a March 31 deadline to file annual results and an auditor resigned to delay the Evergrande’s report.

Transparency and governance concerns have grown alongside worries about Evergrande’s ability to repay debt despite a record number of defaults last year.

Investors are still looking to squeeze the company from its debts.

Who is largely affected by Evergrande in the U.S.?

BlackRock Evergrande Holdings
BlackRock Evergrande Holdings

BlackRock, HSBC, and UBS are the largest institutions holding Evergrande in their portfolios.

BlackRock added 31.3 million notes of Evergrande’s debt between January and August 2021 alone.

That pushed its stake to 1% of the assets in its $1.7 billion Asian High Yield Bond Fund.

HSBC increased its positions in the company by 40% through July, while UBS increased its position by 25% through May.

BlackRock was recently hit by a $17 billion loss due to its exposure in Russia.

While these numbers don’t compare to the giant’s overall AUM of $9.46 trillion, they are still relatively large losses.

We can see how these global investments affect our stock market too.

The DOW is currently down -152% and the NASDAQ -49%.

The SPY is just keeping up despite breaking its monthly downtrend.

What are your thoughts on the scale of Evergrande’s losses?

How long do you think the developer will be leading its investors around?

Leave your thoughts below.

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What China’s Evergrande Debt Crisis Could Mean For AMC

Evergrande Group AMC
Evergrande Group – Stock Market Crash

It’s incredible how much debt is allowed to accumulate in one company. The Evergrande Group owes approximately $300 billion and investors fear it could destabilize China’s financial system.

The massive selloff seen in the Hong Kong markets heavily influenced the New York Stock Exchange. If one of the world’s top economies crumbles, what will happen to the U.S markets, and what will it mean for AMC stock?

franknez.com evergrande

Welcome to Franknez.com – I saw some apes in the community wanted to hear my thoughts on how Evergrande could potentially affect AMC stock.

Lets get started!

A Preview to An Economic Downturn

Economic Downturn

Blood everywhere in the markets, and this seems to only be a preview to what’s coming.

We received a glimpse into the future of the repercussions caused by overleveraged companies.

I think it is safe to say the feds are sweating bullets from this economic trailer.

They’ve been pumping trillions of dollars into the system and loaning overleveraged institutions money that can’t even get paid back.

Large hedge funds have lost billions of dollars while short seller losses continue to accumulate in the millions.

This disruption has been caused by retail investors creating buying pressure in heavily shorted stocks.

Two of the biggest ‘meme stocks’, AMC and GME, have raised havoc for financial institutions betting against AMC Entertainment and GameStop.

According to insiders within the retail community, TD Ameritrade has never seen this much shorting take place in the history of the markets.

The word is there is no guarantee that the Group will be able to meet its financial obligations, with the company hiring a team of outside advisors.

How Will Evergrande Affect The U.S?

We saw Evergrande’s slip affect the three main indexes in the New York Stock Exchange.

The collapse of the Hong Kong markets would send shockwaves through global financial markets, including the U.S.

Just about every stock and crypto in our markets was significantly down after the Evergrande announcements. We saw massive liquidation in both of these sectors.

If China is unable to step in and protect its economy from financial collapse, the U.S markets will too experience a stock market crash.

Though I think the NYSE is due for one anyway, with or without Evergrande.

The Great Uncovering

Hedge funds in the U.S have been suffering from losses all year due to retail investors buying heavily shorted stocks.

Short sellers have been overleveraging their positions to drive the share price down no matter the costs.

They too have been digging too deep of a hole to close their overleveraged positions.

With billions of short shares borrowed and zero positions closed, hedge funds are a threat to the stock market and U.S economy.

As the market demands for debt to be repaid, hedge funds will need to accommodate to margin requirements by liquidating some or all of their positions.

In doing so, stocks such as AMC and GME will experience major upswings.

A stock market crash could force short sellers to get margin called, where their accounts will be forced to get liquidated if they cannot meet the margin requirements.

Closing out positions in AMC, GME, or any other momentum stock that has been heavily shorted, would cause a short squeeze.

This is why retail investors holding AMC stock or GME stock should not worry about its current volatile share price.

The Share Price Is Psychological

If you’re holding a heavily shorted stock with negative beta, such as AMC or GME stock, chances are they will react the complete opposite to the rest of the market during a stock market crash.

So why was AMC and GME red during the Evergrande announcements? Shouldn’t both these stocks have been green oppose to its counterparts? One thing we have to keep in mind is that hedge funds borrowed more than 4 million short shares to drive the stock price down.

Both of these stocks’ performances were masked by continued shorting and psychological warfare. In theory, stocks with negative beta should have reacted the complete opposite.

We have seen multiple manipulation tactics in the markets to understand that hedge funds will use every resource possible to attack retail investors.

What Will Happen To AMC Stock If The Market Crashes?

Major selloffs from institutions holding AMC stock would take profits, resulting in the share price taking a massive dip.

This is the opportunity seasoned retail investors in the ape community have been waiting for.

Massive buying pressure from the community would pump the price back up and could force shorts to cover their positions once and for all.

The reason I say AMC’s stock price is psychological is because the stock will continue to go down. This could very well be the dip before the rip.

And it will be 100% up to retail investors whether they choose to play offense or not. As for me, I’m taking advantage of the biggest dip yet to add to my position before hedge funds begin covering their positions.

However, follow what your conviction towards the stock tells you. Trey said it best when he says we are all adults and no one can decide what we do with our money but ourselves. “Have a plan.”

Evergrande Group and AMC

Prepare For The Challenge

I’m going to share my real thoughts with you on this short squeeze play with AMC.

I am not selling my AMC stock and I am taking any massive dip that comes our way as an opportunity to increase my position.

It’s really that simple to me. What’s going to be challenging for new retail investors is seeing their investment drop little by little, every day.

What’s prepared me for this challenge is my conviction towards the stock. The data says it all and I don’t mind holding AMC through the winter.

The longer AMC shareholders hold the stock, the more money hedge funds lose.

And although AMC stock could potentially face a steep drop, I know holding my stock is causing short sellers serious damage.

Should You Keep Holding AMC Stock?

franknez.com

When GME began skyrocketing, only a bunch were able to cash in some serious profits. These were the diamond hands who stuck to their convictions.

I can’t tell you to hold, but I can tell you that I’m going to hold.

I personally don’t care what gets thrown my way or about what the people who’ve lost their conviction have to say.

See, at some point short sellers have to cover their positions. Whether that price point is at $40, $30, or even $10, no one knows.

What I do know is that the retail investors who get to experience the MOASS will be those who held AMC stock the day shorts decided to cover.

And that’s good enough for me.

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Will Evergrande’s Default Cause AMC To MOASS?

Will Evergrande default cause AMC MOASS
AMC MOASS

BREAKING: Evergrande is on the brink of default. Several key procedures are aligning in regards to an AMC MOASS.

If Evergrande defaults, it could lead to a massive global stock market meltdown.

And with AMC’s new increased negative beta, AMC has the perfect setup for a massive rebound.

BlackRock and the Swiss National Bank just bulked up on their AMC holdings.

Adam Aron is scheduled to incrementally sell some stock?

Apes, this is massive news.

If you sold your AMC stock recently you’re going to wish you had held on.

franknez.com

Welcome to Franknez.com – today’s news is a collection of events that point towards the highly anticipated AMC MOASS event.

Let’s get started!

Evergrande Is On The Brink of Default

Evergrande Default News

According to a press release, Evergrande has defaulted via. AP News.

However, the company has not defaulted any of its offshore debt obligations, according to Daily Sabah.

Although, it is worth mentioning that the DMSA is preparing bankruptcy proceedings against Evergrande and calls on all bond investors to join it.

Blockworks has also confirmed bankruptcy proceedings have begun taking place.

The New York Times confirms Evergrande has defaulted as of 12/9.

The last time news on Evergrande’s debt crisis made it headlines, the stock markets bled heavy.

The U.S Federal Reserve warned Tuesday that China’s property sector could pose global risk.

Evergrande owes millions to U.S financial institutions and investors.

With institutions facing massive losses, liquidity issues begin to arise resulting in stock market chaos.

Evergrande’s default news is a developing story that only get’s worse and worse for the company.

Be sure to subscribe to the blog for updates.

AMC’s Negative Beta Surges To -9.80

A beta less than 0 indicates a reverse relation to the market and is an extreme occurrence according to Investopedia.

Why is this important?

Because when the majority of stocks go down, AMC will have the opposite effect contrary to the rest of the market.

Well, AMC just received an updated negative beta score of -9.80, source.

AMC negative beta Franknez

The company had a negative beta score of close to -4 earlier this past summer.

In general, negative beta stocks tend to do better when the stock market declines.

Any stock market crash that occurs, say one caused by an Evergrande default, could launch a negative beta stock’s share price such as AMC’s opposite of the market.

In simpler terms, a stock market crash would skyrocket a negative beta stock.

Although negative beta stocks have more risk, the rewards are also significantly higher.

Financial Institutions Buy Massive Amounts of AMC Shares

As AMC’s negative beta continues to get further from 0, we have large financial institutions such as BlackRock and the Swiss National Bank loading up on AMC shares.

In a time where the probability of a stock market crash is increasing by the day, these two massive financial institutions are buying this negative beta stock.

In a recent 13F filing, BlackRock increased their position by 31.28% bringing their AMC shares to a total of 40 million shares.

BlackRock increases AMC Shares
BlackRock increases AMC Shares, source

Notably, the Teacher Retirement System of Texas also increased their position by 73%.

In another 13F filing, we see that the Swiss National Bank increased their AMC positions by a whopping 138.16%.

They now hold close to 2 million AMC shares as of this month, November.

swiss national bank buys amc shares
Swiss National Bank buys AMC Shares, source

You can find the massive list of other financial institutions buying AMC stock here.

It’s No Coincidence Institutions Are Buying AMC Stock

The last time we saw heavy institutional buying was before June’s big runup to $72 per share.

The fact that Evergrande poses a risk to global markets means buying a negative beta stock such as AMC could be a way for financial institutions to hedge against any major losses.

On the flip side, it could be a way for financial institutions to cash in massive gains from an AMC MOASS play.

I presume financial institutions will be taking profits on the way up and on the way down.

Which leads to the final point.

Is Adam Aron Selling AMC Stock?

is Adam Aron selling amc stock
Adam Aron

Adam Aron announced mid this year that he would be selling stock later this year under a program filed through the SEC.

These incremental and automatic transactions will occur in the months to come.

His first automatic transaction occurred on Tuesday, where the CEO is using these profits to diversify his assets and offset capital gains taxes.

The silverback has a plan to begin distributing profits in other wealth building assets in the months to come.

In a time where AMC’s share price can drastically change at any moment, it’s easy to see why this executive would set an automatic “cash-in” system.

If there’s anything we can gain from Adam’s actions, it’s that he sees major profit opportunities in the short-term future.

Will The AMC MOASS Finally Happen?

mother of all short squeezes

Our financial system faces systemic risk and AMC’s rare negative beta score is a ticking time-bomb for an explosive upswing.

Financial institutions are buying AMC stock like citizens were emptying grocery stores during the pandemic lockdowns.

And now we see Adam Aron share his plan to take profits in the months to come.

An AMC MOASS could be underway.

I’m willing to hold this stock to see this incredible event play through.

Are you?

Leave me a comment below.

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Read: How high can AMC stock price skyrocket up to?


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