The Chinese property developer Evergrande owes more than $325bn (£269bn). That’s more than Russia’s entire national debt.
For two years, the company has been lurching from crisis to crisis, repeatedly failing to make payments on its multi-billion dollar loans.
Now its founder is under police surveillance, its shares are practically worthless and more than a million people in China are still waiting for their homes to be completed. On Monday, a court in Hong Kong could open a new chapter in the crisis by ordering the liquidation of some of Evergrande assets to pay back frustrated foreign investors.
Now its founder is under police surveillance, its shares are practically worthless and more than a million people in China are still waiting for their homes to be completed. On Monday, a court in Hong Kong could open a new chapter in the crisis by ordering the liquidation of some of Evergrande assets to pay back frustrated foreign investors.
In most Western countries, a failing privately-owned business such as Evergrande would either be liquidated or, in extreme cases, bailed out by the government. But things are done differently in China.
The world’s second-largest economy is neither capitalist nor communist. It is unique, which makes it hard to predict Evergrande’s fate.
But for now, Beijing has eased pressure on the firm in ways other countries cannot.
“It’s alive only because the government hasn’t let it die,” says Leland Miller, chief executive of China Beige Book, an analytical platform that tracks the Chinese marketplace.
The Chinese property developer Evergrande owes more than $325bn (£269bn). That’s more than Russia’s entire national debt.
Now its founder is under police surveillance, its shares are practically worthless and more than a million people in China are still waiting for their homes to be completed. On Monday, a court in Hong Kong could open a new chapter in the crisis by ordering the liquidation of some of Evergrande assets to pay back frustrated foreign investors.
For two years, the company has been lurching from crisis to crisis, repeatedly failing to make payments on its multi-billion dollar loans.
In most Western countries, a failing privately-owned business such as Evergrande would either be liquidated or, in extreme cases, bailed out by the government. But things are done differently in China.
Now its founder is under police surveillance, its shares are practically worthless and more than a million people in China are still waiting for their homes to be completed. On Monday, a court in Hong Kong could open a new chapter in the crisis by ordering the liquidation of some of Evergrande assets to pay back frustrated foreign investors.
Now its founder is under police surveillance, its shares are practically worthless and more than a million people in China are still waiting for their homes to be completed. On Monday, a court in Hong Kong could open a new chapter in the crisis by ordering the liquidation of some of Evergrande assets to pay back frustrated foreign investors.
In most Western countries, a failing privately-owned business such as Evergrande would either be liquidated or, in extreme cases, bailed out by the government. But things are done differently in China.
The world’s second-largest economy is neither capitalist nor communist. It is unique, which makes it hard to predict Evergrande’s fate.
But for now, Beijing has eased pressure on the firm in ways other countries cannot.
“It’s alive only because the government hasn’t let it die,” says Leland Miller, chief executive of China Beige Book, an analytical platform that tracks the Chinese marketplace.
#China #fix #Evergrande #mess
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