this post was submitted on 03 Feb 2024
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A Hong Kong court ordered the liquidation of China Evergrande, the world's most indebted property developer.

Evergrande has assets of about $245 billion, but owes about $300 billion.

Its demise is a "controlled collapse," but still raises systemic risk and will hurt investors, says an analyst.

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[–] Crackhappy@lemmy.world 83 points 9 months ago (14 children)

I am somewhat concerned about the global implications of this. Evergrande is a symptom of a deeper malaise in the Chinese real estate market.

[–] partial_accumen@lemmy.world 65 points 9 months ago* (last edited 9 months ago) (8 children)

is a symptom of a deeper malaise in the Chinese real estate market.

Its even worse than that because retail investors in China use real estate as their primary investment vehicle. Where as someone in the USA might put money in a 401k for retirement or a brokerage account for investing, those don't exist (in the reliable way) in China. So many regular people's nest egg is tied up in real estate. So this isn't just the real estate market getting wiped out, its millions of working class people's life savings just evaporated.

[–] paradiso@lemm.ee 1 points 9 months ago

That sounds like potentially violent "protests" in the future.

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