China Evergrande
China Evergrande is a very large real estate holding company, in China.[1]
China has been in the midst of a massive building boom, for a long time. Foreign observers voiced concern that there was a massive real estate bubble, which would eventually burst, at great cost to investors. They pointed to "ghost cities" as evidence of over construction. These ghost cities have modern apartments, roads, sewers - all the infrastructure for a functioning city, but almost no occupants.
China Evergrande played a role in the construction of these ghost cities, and was having to carry the debt for those unsold and unrented apartments.
The firm admitted it would not be able to publish its financial figures and it suspended trading on the Hong Kong stock exchange, on March 20, 2022.[2] Chinese Estate Holdings, an affiliated firm, announced losses of $447 million.
The Lowy Institute for International Policy speculated the firm seemed about to go bankrupt.[3]
References
- ↑ Ken McCallum. China Developer Shares Tumble Most Since 2008: Evergrande Update, Bloomberg, 2022-03-14. Retrieved on 2022-03-22.
- ↑ Pearl Liu. Chinese Estates reports US$447 million loss for 2021 as costs of China Evergrande friendship mount, South China Morning Post, 2022-03-21. Retrieved on 2022-03-22.
- ↑ Revising down the rise of China, Lowy Institute, 2022-03-15. Retrieved on 2022-03-22. “Concerns about oversupply, excessive leverage, speculative investment, and rapid price increases are longstanding.”