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
While you’ve argued your way into one partial example of a benefitial effect, you completely lack even remote capacity to properly explain the overall effect of a supposed real estate crisis in China. Spoiler alert: nobody has this capacity. Even the whole Hayward’s econ department with all the computers you could give them.
Yet, there’s an overwhelming historical evidence: big recessions in key world economies lead to recessions in linked countries. So, I’d say, buckle up.
Japan in the 90s as a counterpoint vs US economy.