- cross-posted to:
- world@lemmy.world
- cross-posted to:
- world@lemmy.world
Chinese property giant Evergrande’s shares were taken off the Hong Kong stock market on Monday after more than a decade and a half of trading.
It marks a grim milestone for what was once China’s biggest real estate firm, with a stock market valuation of more than $50bn (£37.1bn). That was before its spectacular collapse under the weight of the huge debts that had powered its meteoric rise.
Experts say the delisting was both inevitable and final.
“Once delisted, there is no coming back,” says Dan Wang, China director at political risk consultancy Eurasia Group.
Evergrande is now best-known for its part in a crisis that has for years dragged on the world’s second-largest economy.
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“Once delisted, there is no coming back,”
Can someone explain why this is?
… meteoritic rise…
No, they don’t. Meteorites fall to the ground while vaporizing themselves. Like Evergrande it seems.
if they considered “ejecta” rising after the metorite crashes and sends material into space.
Hmm.:)
What are the consequences of this?
Typically this sort of stuff is the tip of the iceberg, especially in places where bad news that makes leaders look like idiots are suppressed. I wouldn’t be surprised if this was the sort of 2007 event that got 2008 rolling.
Aside from potentially rawdogging a massive economic meltdown based on extremely shaky loans, market speculation and corruption, building a lot of half built buildings is also terrible for the environment now that they are occupying lands that used to be habitat. Some people probably bought places that will also never be finished, now.
ghost cities and ghost towns, chinese people spent thier life savings invested on this and lost it all, or most of it.
Ok. Now how do I get rich off of this?
You hodl GME sobs quietly
You can no longer dump your worthless stock.
This only seems bad if you’re drinking the capitalist Kool aid. Does this really matter at the end of the day?
Mostly likely yes (insofar as a single bank can matter). When banks collapse it sets off a cascade of debt defaults which rapidly contracts the real money supply in an economy, since most actual wealth (and, in turn, the physical creation and transfer of goods, services, and labor that facilitates) is created via fractional reserve lending. This causes a recession. If it was only this bank, it probably wouldn’t be that huge of a deal for China more broadly. But it’s not only this bank, and it is a huge number of provincial pet banks all tied to the same development and speculation industry. There’s a reason economists have been sounding alarm bells. That’s not to say China doesn’t have the resources to deal with this and/or the fallout, but it is at least a problem to be dealt with.
