Property Giant China Evergrande ordered to liquidate, owing $300 bln

[Nighthawk]

https://www.reuters.com/business/em...de-back-court-liquidation-hearing-2024-01-28/

 

[schizo]

It's no longer a matter of if but when the death spiral will rear its ugly head in the Chinese market. Frightening prospect.

 

[tony.m]

It is now clear that there will be no governmet support for the Chinese property market.

 

[tony.m]

schizo have you sold your holiday home in Macao ?

 

[TheDawn]

https://www.reuters.com/business/em...de-back-court-liquidation-hearing-2024-01-28/

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It's still not liquidated? I thought the company had already been dismantled and its founder was already in jail.

 

[maxinger]

Liquidate when the company earns tons and tons of money
NOT
Liquidate when the company owes tons and tons of money.

 

[TheDawn]

It is now clear that there will be no governmet support for the Chinese property market.

There is NO WAY that the government is going to just let the property market fall without doing something. You know how heavily the Chinese mass is invested in the property market in China? China cannot afford a 2008-style financial crisis. China might not have derivatives that further collateralized the property market like in the West but China has a sleuth of industries that depend on the real estate industry. The complete collapse of the real estate market would devastate these related industries. The financial difficulties suffered by Evergrande already brought tremendous financial hardships to the suppliers of Evergrande for its projects.

 

[TheDawn]

There is NO WAY that the government is going to just let the property market fall without doing something. You know how heavily the Chinese mass is invested in the property market in China? China cannot afford a 2008-style financial crisis. China might not have derivatives that further collateralized the property market like in the West but China has a sleuth of industries that depend on the real estate industry. The complete collapse of the real estate market would devastate these related industries. The financial difficulties suffered by Evergrande already brought tremendous financial hardships to the suppliers of Evergrande for its projects.

Not to Evergrande perhaps but if the entire property market goes under like what happened in 2008, the government will step in, guaranteed. The government is already propping up the asset market by buying state ETF funds. Be prepared for a major yuan depreciation.

 

[mervyn]

it is the beginning of an end of headline news, a floor for its property market. government won't bail the private delveopers out since they are leveraged up. all creditors and shareholders will lose money, domestic and foreign.

without evergrade's control, those unfinished housings may be able to finish and deliver.

https://www.nytimes.com/2024/01/28/business/china-evergrande.html

 

[S2007S]

Calm down folks. No need to worry. China markets will only skyrocket from here. All markets around the world will do fantastic because it's an election yr here in the US and when the US does greay under 34 trillion in debt the entire world does awesome under hundreds of trillions in debt. So no worries about this news. Everything will be back to normal tomorrow. Sheesh.