Evergrande’s liquidation is a new low in China’s property crisis
A judge in Hong Kong surprises the mainland
“Enough is enough,” declared a Hong Kong judge on January 29th of Evergrande, a failing Chinese property behemoth, and its two-year struggle to avoid repaying its creditors. In a landmark ruling, the court ordered the liquidation of the firm, which is the world’s most indebted property developer, with over $300bn in liabilities. A provisional liquidator will be appointed, assuming management of the company. Foreign creditors will have to recoup losses from a firm that holds most of its assets in mainland China. The ruling thus pits Hong Kong’s courts against a Chinese government anxious to restore public confidence in a struggling market.
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This article appeared in the Finance & economics section of the print edition under the headline “Never grand”
Finance & economics February 3rd 2024
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