As we’ve reported for months, the world’s largest debtor, Evergrande, is going bust. Today the firm suspended trading in Hong Kong.
Zerohedge reported late Sunday night in the US:
*CHINA EVERGRANDE AND ITS UNITS SUSPEND TRADING IN HONG KONG
— zerohedge (@zerohedge) March 21, 2022
We’ve been reporting on Evergrande for months. At one time the owner of Evergrande was the richest man in Asia and one investor was the richest woman in Hong Kong.
The company was the most indebted company in the world. It was a major component of the China economy. The local governments got involved in the property market and now they have trillions of debt.
Evergrande grew quickly and borrowed along the way.
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Its total liability, which include payables, is at 1.97 trillion yuan ($306.3 billion), or around 2% of the Chinas GDP. Other than bank and bond channels, the developer has been tapping the shadow banking market, including trusts, wealth mgmt. products and commercial paper. pic.twitter.com/GzycMz9gnW
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Deep₿lueCrypto
The fall of Evergrande was in the works for some time.
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Just in 2021 alone, Chinese billionaires lost so much money due to Evergrande, it’s insane.
Colin Huang – $30 Billion
Zhong Shanshan – $18 Billion
Jay Y Lee – $16 Billion
Hui Ka Yan – $15 Billion
Pang Kang – $12 Billion pic.twitter.com/QZCGMLysSd—
China’s property market has been around 25% of the country’s GDP. With Evergrande and other companies failing to meet their debt payments, that sector will be negatively impacted. This is a big deal for China and the world’s economy.
Spending in the US is out of hand and it is across the world as well.
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