It’s Over: Evergrande Stops Trading
Posted on 09/28/2023
China Evergrande Group is no longer trading, following reports that its chairman was placed under confinement by authorities. China’s property sector accounts for nearly a third of its GDP. Unfortunately, that market has turned south and many projects that were pre-sold have yet to be completed. It’s likely they will not be completed, leaving borrowers with liabilities and no underlying asset. The human toll of the speculative property market in China is immense. In a world rife with inflation, China is actually seeing lower prices in a variety of goods due to the calamity.
The Evergrande saga is a milestone in the implosion in the property market. The company has US$ 328 billion in liabilities. The chairman in question is Hui Ka Yan.