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.
I’m not saying it’s ideal or healthy.
But I don’t see how the west would have an upcoming issue with real estate.
People are still willing to pay increasingly large amounts of money for real estate and when locals can’t afford it they just bring in immigrants.
I’d be interested to know how the real estate valuation in the west is going to decrease.
I have a feeling that “too big to fail” will continue to be the mantra in the west for bailing these institutions out.