- cross-posted to:
- news@beehaw.org
- china@sopuli.xyz
- cross-posted to:
- news@beehaw.org
- china@sopuli.xyz
A Hong Kong court has ordered one of China’s biggest property developers, Evergrande Group, to liquidate after it was unable to reach a restructuring deal with creditors over hundreds of billions of dollars it owes.
Key points:
- Evergrande has been ordered to liquidate after failing to come up with a restructuring deal with creditors over US$300 billion in debts owed
- The liquidator will now attempt to take control of Evergrande assets outside China, but there are fears that could pave the way for other lawsuits
- It could take years for the offshore liquidator to take control of subsidiaries across mainland China
You must log in or register to comment.
This Evergrande business has been hanging in the air for years now. I wonder what this news means in practice.
Same. I feel like I’ve been waiting for this Sword of Damocles to fall for the last decade. Until they actually break up, however, I’m still curious to see the ramifications.
China should have just ripped the bandaid off years ago.
I wonder if ripping it off might have caused a big enough economic problem to threaten the stability of the government.
They probably weighed what would happen then vs supporting the business for a while. Problem is no one can tell the future, so they got caught.
It may be the best case scenario for them still. This could be their “economic soft landing”.
Not a property developer! Harcourt, fetch me my clutching pearls!
Real Estate represents something like 30% of China’s total GDP and Evergrande was one of the top 3 largest Real Estate developers in China. Country Garden is / was another of the Top 3 and it too is in default with a debt problem almost as bad as Evergrande.
Those two former behemoths aside China has seen literally dozens of smaller Real Estate developers default and go under over the past 36 months and it’s having painful consequences on downstream industries, consumers, and government budgets.
This ain’t “Pearl Clutching”, Evergrande is just the latest visible indicator that there’s a serious problem with the Chinese Economy.
Evergrande halted trading on Chinas stock exchange for like over a year and a half.
China gave them time and money to not fail, but it was too late. Now the sticthing is coming undone.
Their stock was halted again today:
So, too big to fail, huh? I see where you’re at.
So, too big to fail, huh? I see where you’re at.
Oh no, they are failing. Are in fact failed at this point.
Yeah I didn’t own a house in 2008 so that whole financial crisis thing had zero impact on me 🤔
China has a GDP of $12.5 trillion.
If someone deleted 2.5% of your net worth including assets from your bank account you would notice and be annoyed.
