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submitted 1 year ago by MicroWave@lemmy.world to c/world@lemmy.world

China Evergrande Group last traded on the Hong Kong exchange on March 18, 2022 at 1.65 Hong Kong dollars ($0.13) per share, before being suspended on March 21.

The company also posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, with total liabilities of 2.39 trillion yuan.

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[-] lowleveldata@programming.dev 9 points 1 year ago

Evergrande? What do they do?

[-] nomecks@lemmy.world 57 points 1 year ago

Take deposits for housing and use it to solicit more deposits for housing, without actually building any useable housing.

[-] Cheers@sh.itjust.works 8 points 1 year ago* (last edited 1 year ago)

Just to add, they did start building, but they just started building as construction costs were increasing, so they ended up negative on all of their construction costs.

Construction companies famously tore down fully built buildings because evergrande couldn't afford them..

[-] nomecks@lemmy.world 2 points 1 year ago

They built a pile of tofu dreg buildings that'll all fall down inside of ten years.

[-] zefiax@lemmy.world 14 points 1 year ago
[-] jhulten@infosec.pub 6 points 1 year ago
[-] theodewere@kbin.social 7 points 1 year ago* (last edited 1 year ago)

real debt, though.. ha ha..

[-] Rayspekt@kbin.social 4 points 1 year ago

Oh my god it’s still the commercial

[-] HobbitFoot@thelemmy.club 7 points 1 year ago

They were one of several construction companies that built a ton of buildings in China fueled by municipal and corporate debt. It works great when the local economy grows.

The Chinese economy has stopped growing at the levels to sustain the market conditions to pay back the debt. There are doubts that China could even get back to those levels of economic growth due to its aging population.

[-] Tar_alcaran@lemmy.world 4 points 1 year ago

Nothing, but they got paid for lots and lots of houses and offices. And that a problem.

this post was submitted on 28 Aug 2023
229 points (99.1% liked)

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