Idk about you but I think the people who've done this prolly know what they’re doing. Ig we'll see how this affects China's housing in the coming years.
So, the real estate market in China was over leveraged just - like it's been over leveraged in many other countries. Will be interesting to see how their c̶o̶n̶ ̶a̶r̶t̶i̶s̶t̶s̶, I mean their economists attempt to correct for it. Chances are, if it's happening there it'll start a domino effect on other over leveraged real estate markets.
Not like "many other countries" but expectedly much worse: real estate has been de facto where most Chinese have been concentrating their wealth as "investment" in the absence of better local alternatives and the inability to invest abroad.
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 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.
Fergus Saurin, a lawyer representing an ad hoc group of creditors, said Monday he was not surprised by the outcome.
The judge is expected to provide more reasons for the liquidation order during a separate court session Monday afternoon.
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.
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