Debt-laden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.
Judge Linda Chan said “enough is enough” after the troubled developer failed to come up with a plan to restructure its debts.
Evergrande has been the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.
Evergrande has been the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.
The decision is likely to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.
Evergrande shares fell by more than 20% in Hong Kong after the announcement. Trading in the shareshas now been suspended.
China’s property sector contributes roughly a quarter of the world’s second biggest economy.
Liquidation is a process where a company’s assets are seized and sold off. The proceeds can then be used to repay outstanding debts.
Ahead of today’s ruling, China’s Supreme Court and Hong Kong’s Department of Justice signed an arrangement on mutual recognition and enforcement of civil and commercial judgments between mainland China and Hong Kong which comes into effect today.
Debt-laden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.
Evergrande has been the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.
Judge Linda Chan said “enough is enough” after the troubled developer failed to come up with a plan to restructure its debts.
The decision is likely to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.
Evergrande has been the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.
Evergrande has been the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.
The decision is likely to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.
Evergrande shares fell by more than 20% in Hong Kong after the announcement. Trading in the shareshas now been suspended.
China’s property sector contributes roughly a quarter of the world’s second biggest economy.
Liquidation is a process where a company’s assets are seized and sold off. The proceeds can then be used to repay outstanding debts.
Ahead of today’s ruling, China’s Supreme Court and Hong Kong’s Department of Justice signed an arrangement on mutual recognition and enforcement of civil and commercial judgments between mainland China and Hong Kong which comes into effect today.
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