A Hong Kong court ordered the liquidation of China Evergrande, the world’s most indebted property developer.
Evergrande has assets of about $245 billion, but owes about $300 billion.
Its demise is a “controlled collapse,” but still raises systemic risk and will hurt investors, says an analyst.
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It looks to me like there are a fair amount of finished homes with fine construction that are vacant due to this whole thing. Many weren’t completed but many were.
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Based on scanning wiki and a couple articles and seeing nothing about construction quality aside from unfinished projects, definitely not an authority
Oh I see, didn’t realize the construction quality was terrible:( So it was a sham the whole time? I thought they just didn’t think through the locations which made the housing useless (no work within reasonable commute).
The whole thing was essentially a real estate Ponzi scheme where new investors were paying for pre-existing work, from what I’ve read
New investors were covering existing loans you mean!
No Ponzi scheme here, nothing of the sort. Just good old economics!
But yes, they sold apartments and used the proceeds to finance existing, already sold buildings that weren’t built yet.
This isn’t a pyramid scheme, but it definitely collapses if it stops growing.