China's Evergrande files for bankruptcy

MicroWave@lemmy.world to News@lemmy.world – 202 points – China's Evergrande files for bankruptcy | CNN Business
cnn.com

China’s Evergrande Group — once the country’s second-largest property developer — filed for bankruptcy in New York on Thursday.

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China’s real estate sector was long seen as a vital growth engine in the world’s second-largest economy and accounted for as much as 30% of the country’s GDP. But Evergrande’s 2021 default sent shockwaves through China’s property markets, damaging homeowners and the broader financial system in the country.

damaging homeowners and the broader financial system in the country.

Or, showing that current homeowners overpaid, opening the door to new homeowners and allowing the broader financial system to have losses we all knew were possible.

Curious to see if there is going to be a domino effect with their real estate companies.

Its fucked, no way around it. Property bubble has already exploded with a whimper, thanks to CCP censorship. Chinese households are now extremely wary of trusting their money to others and aren't gonna be buying homes until the next (unsustainably small) generation.

Curious to see if there is going to be a domino effect with their real estate companies.

China Gardens, the largest real estate company, is toppling (article is from a week ago and those payments still haven't been made) and at least one of China's largest "Shadow Banks", Zhongzhi Enterprise Group, is going with them.

The dominoes aren't going to stop; Evergrande, Country Gardens, and Zhongzhi Enterprise Group are just the first visible ones.