The embattled property giant's shares were taken off the Hong Kong stock market on Monday.

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.

  • wewbull@feddit.ukEnglish
    11·
    1 day ago

    I’m not sure I follow what you’re saying, but it sounds like…

    The CCP plan was:

    • Drive growth of megacorporation through massive loans
    • Megacorporation builds properties
    • Megacorporation has massive losses and defaults on loans
    • profit???
    • ✺roguetrick✺@lemmy.worldEnglish
      23·
      1 day ago

      Not really. What they identified was

      • megacorp buys property
      • megacorp takes loan based on property+development
      • megacorp buys property
      • land value increases due to all the property buying
      • megacorp leverages the land value increase(now the loans are being driven by loans)
      • property development becomes completely divorced from any actual need, instead becoming an investment vehicle

      This is the financialized model that pretty much drives the western economy. China rightfully saw this as undesirable and put limits on how much developers could borrow based on assets. And this is the result. Realize that many of these loans were foreign investments.

      https://en.m.wikipedia.org/wiki/Three_red_lines

    • Not_mikey@lemmy.dbzer0.comEnglish
      4·
      1 day ago

      Sounds like profit to me, houses and buildings got built, rent and housing prices are going down. Sucks for the megacorp though.