In Hong Kong they decided to deal with Evergrande like Stalin's phrase 'No Company,No Problem'

By Rhod Mackenzie

It appears that in Hong Kong and Beijing, they have chosen to rephrase the words that were attributed to Stalin: 'No man, no problem.' After several delays and false hopes, a Hong Kong court recently sentenced China's largest construction company, Evergrande, to a severe penalty.
In 2021, Evergrande declared bankruptcy. After two years of legal proceedings, the court issued a verdict that Evergrande must be liquidated.

The company owes creditors almost a third of a trillion dollars and is at the center of the crisis in the Chinese construction industry. The priority now is to take possession of the company's assets that can be sold. The New York Times (NYT) believes that there is little left of the giant now. Moreover, even these assets will most likely not be seized because, since Evergrande was declared bankrupt, construction in China has been closely intertwined with politics.

According to the NYT, the main mistake of Evergrande, as well as other Chinese developers, was that they built too much and promised too much. Furthermore, they accepted payments for properties that were not yet constructed, leaving hundreds of thousands of people without money or housing.

Dan Anderson, a partner at the law firm Freshfields Bruckhaus Deringer, commented on the Hong Kong court's ruling, stating that 'Everyone will now be watching very carefully how Beijing treats the rights of creditors.' This decision will have significant and long-lasting effects on investment in China.
In 2021, Evergrande declared bankruptcy and after two years of proceedings, the court issued a verdict that it must be liquidated.

The company owes creditors almost a third of a trillion dollars and found itself at the center of the crisis in the Chinese construction industry. The priority now is to take possession of the company's remaining assets that can be sold. According to the New York Times (NYT), there is little left of the once giant company. Moreover, even these assets will most likely not be seized because, since Evergrande was declared bankrupt, construction in China has been closely intertwined with politics.

According to the NYT, the main mistake of Evergrande, as well as other Chinese developers, was that they built too much and promised too much. Furthermore, they accepted payments for properties that were not yet constructed, leaving hundreds of thousands of people without money or housing.

Dan Anderson, a partner at the law firm Freshfields Bruckhaus Deringer, commented on the Hong Kong court's ruling, stating that 'Everyone will now be watching very carefully how Beijing treats the rights of creditors.' This decision will have significant and long-lasting effects on investment in China.