Evergrande creditors are still working to raise debts, which is more than $ 340 billion. Once after China’s second largest developer, it was in trouble when many years ago the Chinese regulators were cracked down on the reason that the developers were borrowed by the developers.
As a result, dozens of property companies have defaulted their debts, the property market began a slowdown which is still drawn to the second largest economy in the world.
Here’s what to know about Evergrande:
The list of a one -time leader in the China’s property market said at the Hong Kong Exchange on Monday that Avergrande’s stock was listed till Monday morning. The stock was last traded on January 29, 2024, and was subsequently suspended after the Hong Kong court ordered the company’s plea, when it failed to provide a viable debt reorganization plan.
Exchange rules determine that the company’s stock list may be canceled if trading in its securities is suspended directly for 18 months.
The role of Evergrande in China’s wealth crisis following years warning, which reduces the Chinese government’s credit rating in the global rating agencies 2017, the ruling Communist Party vandalized the real estate debt in 2020. It imposed restrictions called “three red lines”, such as Evergrands such as bonds and bank loans.
The fear of potential evergreen default lt in 2021 was disturbed by the global markets, but the Chinese Central Bank said its problems were included and Beijing credit markets will be operational. Evergrande was the largest of the many developers who failed to pay their creditors.
Chinese home buyers often pay even before they build for Ments Parties. Credit crunch for Evergrande and other developers led them to postpone construction, leaving many projects in Limbo. Demand for home buying and slowing home, construction materials, devices and vehicles at the time of the economy were also faced with disruptions caused by the Kovid -19 epidemic.
Since their wealth is built in the wealth of most Chinese families, the anemic housing market has been a major factor in controlling the cost of the customer.
There has been some recovery in the housing sector, but home prices and investments have been steadily declining.
Before borrowing torture, real estate was about 20% of China’s economy. When spent on steel and copper for construction, furniture and other related purchases, estimates of its share of the economy reached almost third place.
China leaders have sought developers to conclude projects and deliver the already paid Ments parties to finish the projects and provide billions of lending and subsidy. They have encouraged local governments to buy more apartments to serve as affordable housing, and have relaxed payment and mortgage requirements.
They have also removed many restrictions on the purchase of homes for investment purposes in big cities, the step described as “surprising” as analysts at HSBC Global Investment Research have come before expected.
They said in a recent report that sales and house prices are likely to fall further in August.
“We think it’s a positive change that shows the advanced activism of the government in rolling out the steps, which will help strengthen the market confidence and to relieve the concerns of excitement.”
Headquartered in Shenzhen, Southern China near Hong Kong, the status of Evergrande was founded by Evergrande entrepreneur Hui Ka Yan, also known as the XU Giene, also known as XU Jiayin. Boom and bust have been mirrored in a country house built by his Essent and Diklen in China’s property market.
The company’s shares were listed in Hong Kong in 2009.
Evergrand applied for Chapter 15 bankruptcy defense in New York City in 2023, but the case was later withdrawn. Although the Hong Kong court ordered the company to advance the company’s debt, more than 90 percent of its assets are on the Chinese mainland, making it difficult to impose payments to its creditors.
Its liquidators said in a recent progress report that according to July 31, they received a $ 45 billion debt claim, which is more than $ 27.5 billion responsibilities announced in December 2022, and the new figure is not final. As of January 29, 2024, 100 more companies of the group were also controlled with mass wealth.
So far, Liquidators have sold about $ 255 million worth of assets, as “ordinary”.
AP reporter Kanis Luug contributed in Hong Kong.
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