Evergrande, once the world’s most indebted property developer, amassed $300 billion in debt, leading to its downfall after Beijing implemented new borrowing restrictions in 2020. The company’s financial struggles worsened, resulting in defaults on overseas debts and a subsequent liquidation order from the Hong Kong High Court in January 2024, following years of legal battles. The company’s shares were delisted after a 99% loss in market value. Liquidators have revealed $45 billion in debts and limited asset sales. The focus has now shifted to the distribution of assets among creditors during the ongoing bankruptcy process.
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Evergrande, once China’s largest property developer, has been delisted from the Hong Kong stock market after its spectacular downfall. This marks the end of the road for the company, which was built on massive debt and saw its valuation plummet by over 99% after the onset of the crisis. The company’s collapse, fueled by over $300 billion in debt and regulatory changes, has significantly impacted China’s economy, contributing to a property slump and decreased consumer spending. Experts predict more property firms will likely collapse, suggesting the crisis is far from over.
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China Evergrande, the world’s most indebted developer, has been ordered to liquidate by a Hong Kong court. With over $300 billion in total liabilities, this move is likely to have significant ripple effects on China’s financial markets and could potentially become a global emergency. As someone who frequently travels between Shenzhen and Hong Kong, I have observed the stark contrast in the way the news is presented. Mainland China reassures its citizens that there is nothing to worry about, while Hong Kong warns of an impending disaster. This stark difference in narratives is troubling, and it raises questions about the transparency and reliability of information.… Continue reading
John Q. Hosedrinker