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HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: Steve G.
Date: January 28, 2024 10:49PM
Even after having sold many of its assets, Evergrande is causing big troubles in China's economy.

Court orders China Evergrande property developer to liquidate after it failed to reach debt deal
[apnews.com]

HONG KONG (AP) — A Hong Kong court on Monday ordered property developer China Evergrande Group to liquidate after it was unable to reach a restructuring deal with creditors.

Judge Linda Chan said it was appropriate for the court to order Evergrande to wind up its business given a “lack of progress on the part of the company putting forward a viable restructuring proposal” as well as Evergrande’s insolvency.

The liquidation order is likely to impact China’s financial system, even as authorities try to prevent a selloff in the Chinese stock market. Evergrande’s liquidation will likely also lessen confidence in the property sector, which has been slumping as developers struggle to meet their obligations following a crackdown on excessive borrowing in the sector.

Evergrande had been granted a brief reprieve in December after it said it was attempting to “refine” a new debt restructuring plan of more than $300 billion in liabilities.
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Real estate drove China’s economic boom, but developers borrowed heavily as they turned cities into forests of apartment and office towers. That has helped to push total corporate, government and household debt to the equivalent of more than 300% of annual economic output, unusually high for a middle-income country.

Others developers including Country Garden, China’s largest real estate developer, have also run into trouble, their predicaments rippling through financial systems in and outside China.

Evergrande’s Hong Kong-listed shares plunged nearly 21% before they were suspended from trading on Monday. The benchmark Hang Seng index rose 1% after the ruling, while other property companies’ shares advanced. Country Garden gained 2.9% and Sunac China Holdings jumped 4%.
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Re: HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: anonymouse1
Date: January 28, 2024 11:17PM
Got to make for cheaper housing, no?
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Re: HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: RgrF
Date: January 29, 2024 01:07AM
Once the Chinese government steps in with assistance our own home grown capitalists will attempt to have us forget the bailout our own governments (US-UK) provided to their own private sectors.

The concept of socializing losses while privatizing gains isn't lost within the ranks our worldwide competitors.
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Re: HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: Speedy
Date: January 29, 2024 02:23AM
Quote
anonymouse1
Got to make for cheaper housing, no?

Possibly, and also the loss of life savings for many Chinese who bought apartments that they can’t afford to live in.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: anonymouse1
Date: January 29, 2024 04:26PM
Sadly true.

Quote
Speedy
Quote
anonymouse1
Got to make for cheaper housing, no?

Possibly, and also the loss of life savings for many Chinese who bought apartments that they can’t afford to live in.
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Re: HUNDREDS of Billions: Court orders China Evergrande property developer to liquidate
Posted by: sekker
Date: January 30, 2024 06:09PM
The Chinese real estate bubble is far worse than ours in 2007 or so.

It's worth catching up on how they got where they are - there is no easy fix, and the Chinese government knows it and has been working on deflating their bubble for years.
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