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
  • 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”.