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.
China is a funny place… they tend to just copy what they see on Western media… in this case they all watched Too Big To Fail, and decided it looked like a lot of fun… so they did that on a China sized scale, and the mess this causes is going to make 2008 look like an oyster fart…
Perfect time to buy in the for bounce 😂 /s
You joke, but when this all started to unravel two years ago, it actually did bounce. Not much, but it did. Was clear as day it’s going bankrupt, but then CCP stepped in and it all simply stopped.
Investors are almost all a highly regarded lot.
Evergrande? What do they do?
Take deposits for housing and use it to solicit more deposits for housing, without actually building any useable housing.
This is actually a decent summary of the situation.
I’ve been waiting for this giant to tumble for months now.
First of many, oh how the cards are falling.
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…
They built a pile of tofu dreg buildings that’ll all fall down inside of ten years.
Real estate
Nothing, but they got paid for lots and lots of houses and offices. And that a problem.
If it was any other place it could be a good idea to look into exactly what it’s assets are. However land development companies in China don’t own the land, so in a debt to asset comparison they are horrible. That’s every land development company in china
Schrödinger’s Stock Opening
