Hong Kong court orders Evergrande's liquidation, posing threats to China's economy and global markets
www.abc.net.au
A Hong Kong court has ordered one of China's biggest property developers, Evergrande Group, to liquidate, which could have severe consequences not just for China, but other economies including Australia.

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
    • Buelldozer@lemmy.todayEnglish
      181·
      9 months ago

      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.

    • clayh@lemmy.mlEnglish
      7·
      9 months ago

      Yeah I didn’t own a house in 2008 so that whole financial crisis thing had zero impact on me 🤔