- A Hong Kong court on Monday ordered the liquidation of real-estate developer China Evergrande Group.
- Evergrande is the world’s most indebted developer with more than $300 billion of total liabilities.
- It defaulted on its debt in 2021, sending China’s struggling property sector into a tailspin.
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A Hong Kong court on Monday ordered the liquidation of China Evergrande Group, a move likely to send ripples through China’s crumbling financial markets as policymakers scramble to contain the deepening crisis.
Evergrande, the world’s most indebted developer with more than $300 billion of total liabilities, sent a struggling property sector into a tailspin when it defaulted on its debt in 2021.
That deepened a debt crisis in the sector and sparked many other company defaults in a damaging economic blow that to this day remains a drag on growth.
A liquidation ruling of the developer which has $240 billion of assets will likely jolt already fragile Chinese capital and property markets.
Beijing is now grappling with an underperforming economy, its worst property market in nine years and a stock market wallowing near five-year lows, so any fresh hit to markets could further undermine policymakers’ efforts to rejuvenate growth.
Posting this source which goes through some of the methodology that came out to China potentially having enough vacant real estate to house possibly as high as 3 billion people. A lot of caveats with that estimate, there’s no official data available, and it’s on the high end of a range of estimates, but seems clear they have way too much real estate either built or paid for in advance but not built (and realistically much of that money gone as these companies go under).
https://www.businessinsider.com/china-vacant-homes-3-billion-people-housing-crisis-ex-official-2023-9?op=1