watch
now
Shares
of
China
Evergrande
were
halted
after
plunging
over
20%
in
early
trading
on
Monday
after
a
Hong
Kong
court
ruled
to
liquidate
the
embattled
property
developer.
It
comes
against
the
backdrop
of
a
spiraling
debt
crisis
in
the
country.
China
Evergrande,
which
was
once
one
of
the
country’s
largest
property
developers,
has
in
the
last
few
years
been
enveloped
in
Beijing’s
debt
crisis.
The
Wall
Street
Journal
earlier
reported
that
Evergrande’s
overseas
creditors
failed
to
reach
an
11th-hour
deal
this
weekend
to
restructure,
which
could
mean
an
imminent
liquidation
for
the
real
estate
developer.
Evergrande
is
the
world’s
most
indebted
property
developer,
which defaulted
in
2021 and
announced
an
offshore
debt
restructuring
program in
March
last
year.
Containing
the
contagion
Policymakers
in
China
have
been
scrambling
to
stem
the
debt
crisis
in
the
beleaguered
property
sector.
Last
week,
the
People’s
Bank
of
China
and
the
Ministry
of
Finance announced
measures to
help boost
the
liquidity available
to
property
developers.
The
measures,
which
will
be
valid
until
end
of
this
year,
will
help
ease
a
lingering
cash
crunch
for
Chinese
developers
after
Beijing
cracked
down
on
the
sector
to
address
bloated
debt
levels
in
real
estate.
NANJING,
CHINA
–
AUGUST
18,
2023
–
Aerial
photo
shows
a
residential
area
of
Evergrande
in
Nanjing,
East
China’s
Jiangsu
province,
Aug
18,
2023.
(Photo
by
Costfoto/NurPhoto
via
Getty
Images)
Getty
Images
Evergrande’s
crisis
set
off
contagion
fears
that China’s
property
sector
troubles could
spill
over
to
other
parts
of
the
world’s
second
largest
economy.
Country
Garden,
also
one
of
China’s
largest
developers,
has
been
struggling
to
pay
off
its
own
debt.
However,
the
developer reportedly
said
last
month
that
it
may
avoid
a
default
on
its
yuan-denominated
bonds.
This
is
developing
news.
Please
check
back
for
updates.
