China Evergrande has been ordered to liquidate - and the mess is far from over
Briefly

China Evergrande, the failed Chinese property developer, has been ordered by a Hong Kong court to liquidate. Evergrande is one of the world's largest corporate debtors, with $300 billion in liabilities. The liquidation process and how creditors will be reimbursed will be closely monitored by global investors who have been increasingly skeptical of China. The outflow of capital from China in the past year reflects investors' concerns about the country's demographic challenges, authoritarian rule, and the ongoing economic impact of COVID-19. The bankruptcy of Evergrande, a politically sensitive issue in China, raises uncertainties about the recovery process for investors. Additionally, the liquidation order was issued in Hong Kong, a different jurisdiction from Mainland China where most of Evergrande's operations and assets are located.
The process by which the company is sold for parts - and how the money is returned to creditors - will be closely watched at a time when global investors have quickly been losing confidence in China.
China Evergrande, once a sought-after investment, is now facing liquidation, raising concerns among global investors. With $300 billion in liabilities, Evergrande is one of the largest corporate debtors globally. The outflow of capital from China in the past year reflects investors' diminishing trust in the country due to various factors including demographic challenges, authoritarian rule, and the economic impact of COVID-19. The liquidation process for Evergrande will be closely monitored as it is a test case for recovering funds in a bankruptcy of this scale and complexity in China. However, uncertainties arise from the jurisdiction of the liquidation order being in Hong Kong, while most of Evergrande's operations are in Mainland China.
There are few precedents for a bankruptcy of this size and complexity in China, and the housing sector is politically sensitive (Chinese homebuyers took the risk of publicly protesting in the tightly controlled nation after the company collapsed).
Read at Axios
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