The deal, which was described as “the largest private equity investment in China’s history,” would have been the first major foray by a foreign investor into the country’s real estate market.
Soho China is a building complex in Beijing, which was developed by Blackstone. The company recently walked away from the deal after investors panicked.
Soho China chairman Pan Shiyi and his wife, chief executive Zhang Xin, in 2019. Credit… Getty Images/Visual China Group
After Blackstone Group backed out of an agreement to acquire Soho China, a real estate business controlled by a prominent power couple, shares of Soho China plummeted by one-third on Monday.
Blackstone will not go through with its $3 billion offer for a majority interest in Soho China, the firm announced in a joint filing late Friday. On Monday, both Blackstone, a Wall Street investment firm, and Soho China refused to say more.
Zhang Xin and Pan Shiyi, a married couple who share the position of executive director, run the business. Mr. Pan, the company’s chairman, was one of the first Chinese businesspeople to utilize social media for public relations, and he now has tens of millions of online followers. Ms. Zhang is well-known for her involvement in a 2013 transaction to purchase a share in Manhattan’s General Motors Building.
The revelation comes as China’s wealthiest businessmen face increased scrutiny and pressure to share more of their fortune. The transaction, which would have been one of the largest in the real estate industry, was announced in June and is awaiting regulatory approval. It was seen as an attempt by the husband-and-wife pair to lessen their ties with China.
Soho gets a bargain China may have also bolstered confidence in the country’s real estate industry, which, after years of spectacular expansion, is under more regulatory scrutiny as Beijing attempts to rein in corporate borrowing spree. Under new central bank regulations known as the “three red lines,” developers have been obliged to begin paying down growing debts.
Evergrande, China’s largest developer, has alarmed investors, house purchasers, and analysts who believe the company may soon go bankrupt.
Real estate prices and demand in several of China’s largest cities have begun to sag in recent weeks. The industry has “shown indications of a turning point,” according to a major Beijing think group last week.
On Monday, Hong Kong stocks fell almost 2% as a result of real estate problems and rumors of further regulatory tightening in mainland China.
ITT Technical Institutes students are among those whose debts have been forgiven. ITT Technical Institutes was a troubled company that suddenly shuttered its doors in 2016. Credit… The New York Times’ Sandy Huffaker
According to Stacy Cowley of The New York Times, more than 500,000 student borrowers with almost $10 billion in student loan debt had their debts forgiven this year.
President Biden has so far resisted demands for a blanket debt cancellation, which is a major goal for many progressive legislators, but a slew of seemingly minor eligibility and relief improvements adds up to a substantial increase in help for struggling debtors. And there’s a chance there’ll be more: The Department of Education said that it will make regulatory adjustments to programs targeted at assisting public employees and those on income-driven repayment plans.
There’s a lot of pressure on the federal government, which is the main lender for student loans in the United States, with $1.4 trillion in debt owed by 43 million borrowers, to repair broken relief programs as quickly as possible. Almost all of the loans have been on an interest-free pause since the epidemic began in March 2020, which is set to expire on January 31. And with each debt dismissed, the agency has one less loan to service.
So far, the department’s actions have sparked minimal debate — few object to providing military members, handicapped borrowers, and fraudulent students the relief to which they are legally entitled — but the notion of canceling student debt more widely has sparked a firestorm. Republicans despise the notion of putting the burden on taxpayers, while left-wing opponents view it as a subsidy for people with costly professional degrees.
Kelly Leon, a spokesperson for the Education Department, said, “Our ultimate objective is lasting transformation.” “We are working to create a student loan system that works for borrowers and gives them with the relief that Congress has approved but has been illusive for far too long.”
Advocates claim that the drive for broad debt cancellation has eclipsed demands to fix obvious administrative flaws that must be addressed immediately. READ THE ENTIRE ARTICLE
Fannie Mae says that taking rent payments into account may make up to 17% of individuals better eligible for mortgages. Credit… Ryan The New York Times’ Christopher Jones
Fannie Mae, the government-backed company that buys mortgages from banks, intends to look into many people’s bank accounts – with their consent — for a record of monthly rent payments in order to evaluate mortgage qualifying.
Only 17% of individuals who had not bought a house in the preceding three years and would not have qualified for a mortgage previously could do so today, according to the statistics. However, that 17 percent are disproportionately made up of people of color, many of whom have poor credit records and come from disadvantaged communities on the wrong side of a decades-long wealth divide.
Despite the fact that rent is the biggest payment most tenants make each month, Fannie Mae effectively sets many of the criteria for who qualifies and what data counts. Consumer activists and industry insiders have agreed for years that this is not the way things should be.
Because of Fannie’s complicated, multistep procedure, many individuals will initially be unable to profit from it. Ron Lieber, a writer for the New York Times’ Your Money section, examines the situation.
The soho china founder was a real estate project that Blackstone Group invested in. However, the company has decided to walk away from the deal. This is causing investors to panic as they lose their money.
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