Hong Kong: Order to close Chinese real estate company Evergrande, burdened with debt, received, this is the whole matter.

A Hong Kong court has ordered the liquidation or closure of debt-laden real estate company Evergrande. The New York Times has told about this. This decision of the court is like a blow to China’s real estate sector. Evergrande ran out of cash two years ago. The company defaulted in the year 2021. The order will set off a race among lawyers to find and grab anything in the remaining assets belonging to Evergrande that can be sold.

Investors around the world scooped up property developer Evergrande’s discounted IOUs after the company defaulted in 2021, according to reports, hoping the Chinese government would eventually step in to provide a bailout.

Evergrande, a real estate developer with more than USD 300 billion in debt, is facing the world’s biggest housing crisis. There is nothing left of its vast empire that was so valuable. Allegations that Evergrande, as well as other developers, overbuilt and overpromised, were charging money for apartments that were not built, leaving hundreds of thousands of homebuyers waiting for their apartments, The New York Times reported. Now that dozens of these companies have defaulted, the government is vigorously trying to force them to finish the apartment work, leaving everyone in a difficult situation as contractors and builders have not been paid for years. Has gone.

The order is expected to shock financial markets, which are already skeptical of China’s economy.