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
  • maynarkh@feddit.nlEnglish
    42·
    11 months ago

    This Evergrande business has been hanging in the air for years now. I wonder what this news means in practice.

    • kaitco@lemmy.worldEnglish
      21·
      11 months ago

      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.

      • girlfreddyEnglish
        14·
        11 months ago

        China should have just ripped the bandaid off years ago.

        • maynarkh@feddit.nlEnglish
          8·
          11 months ago

          I wonder if ripping it off might have caused a big enough economic problem to threaten the stability of the government.

          • girlfreddyEnglish
            8·
            11 months ago

            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.

            • maynarkh@feddit.nlEnglish
              51·
              11 months ago

              It may be the best case scenario for them still. This could be their “economic soft landing”.