The rise and fall of China Evergrande

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China Evergrande Group was ordered to liquidate by the Hong Kong High Court on January 29, 2024, after nearly two years of court proceedings. Although it can still appeal the decision, the world’s most indebted property developer will be forced to reckon with creditors, unpaid workers and construction for some 800 unfinished projects in over 200 cities across China. What was behind the rise and fall of a company that nearly dominated the nation’s real estate industry for decades before it came crashing down?

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[jonoEx]

While Evergrande operates in China, it is listed in HK and have international shareholders. Its assets trapped in China will be chopped up sold at discount to other Chinese developers. Property wealth does not leave China. House buyers faced delays will be compensated by Evergrande shareholders funds. In the end the founder and its international shareholders lose.

[catonpillow]

Glad that Сhina has popped Evergrande's bubble and put in place strict restrictions with regards to issuing debt to its other property developers making sure that the issue won't be repeated. Definitely the right choice with regards to the long-term stability of its property market.

[yongchen]

greed, corrupt, mismanagement and bad bussiness decisions from top down is the problem.

[danielpeakperformerscoach]

As a Singaporean, I got shocked when I heard Jurong

[Indian_Girl_Aarini_]

I find it incredibly shocking and surprising how China and India are just so strikingly in contrasting. On one hand they have an abundance of unoccupied buildings (ghost cities is what some people calls it). In fact a few thousand of those cities already. On the other hand in India there is hardly any buildings and is filled with sIums everywhere with no toIiets. USA is in a similar position to lndia with their amounts of homelessness now.

[shinramx]

This Evergrande case is rather unique for me at least, it because Evergrande build this and that are beyond their what they can build (while in still property boom era) with money borrow from many unknown source (cash injected) with high interest rate. And when property boom slowed Evergrande still making property massively with hope that property boom are bouncing back, but suddenly and unexpectedly covid hit hard the world ; and later on due date debt is near and recovery from covid are very slow.
When recovery most property are in declined after covid, people has no power to buy a property and time of debt are running out. Then the Evergrande is starting to fall ....

[davidtan]

Doing a wonderland should be properly studies before construction sadly another disappoinment to failure

[Vlican]

CCP internet army trying to do damage control here in the comments section lol

[TheDailyDiamond]

you do not start 15 theme parks on loan! You gotta start one with your own money and spread it, that's how you do not collapse in business.

[EC-gqxx]

As in any restructuring, the small-time investors will have to carry the burden.

[greaterbayareahero]

HSBC and Blackrock owns most of Evergrande…..go figure.

[stephanieallangarman]

My sympathy is with all the CITIZENS WHO paid down payments in a home hoping to eventually move in. The families who believed they would eventually get a future home. 😢💔. Can’t we all agree that everyone regardless of Country wants affordable safe housing. WHY are there so many “DEBBIE DOWNERS”? People sometimes need to get over themselves …we have MORE in common than NOT. 🙆🏻‍♀️❤️‍🔥

[alexandertheresurrection]

Those investors are never getting that money back. F**ked doesn’t even begin to describe how bad this is.

[maggiechan]

Beijing allowed Evergrande to fall because it was engaged in uber-risky practices.
Right that Beijing didn't bail out Evergrande, like Washington did for the financial institutions, that caused the 2008 housing crisis.

[RedsHitpostMedia]

Basically endless expansion and promises and no tangible products.
So when the money ran out they couldnt finish anything meaning wasted momey

[yojimbo]

This a Capitalism problem, not a Socialism problem.

[DC]

The biggest problem is that Chinese apartment buildings built in the past 3-5 years are Tofu quality. There will be no livable apartment building left in 10-15 years time. So not only did you pay insanely over the value of the apartment, you have an extremely fast depreciating asset on your hands.

These factors will cause revolt in the consumer base eventually

[lokesh]

The other Property Developers do get a Sharehold in the Liquidated Assets.

[Halisco_New_Generation]

Which option is preferable?
China: A billion vacant buildings.
USA: Homeless people suffering from hunger on the streets everywhere.

[TheMizpah]

Only private company can run economy, not the job of any government. If people doesn't demand it, government can not mandate it.