Quote from: (o)(o)ilikeboobs(o)(o) on Today at 04:05:49 PM

Quote from: Lucius on Today at 01:56:20 PM

Quote from: so98nn on Today at 12:58:21 PM

Thats insane amount of money! How could so big firm with accountants, managers, CA's, lawyers working for them 24x7x365 can let this happen? I mean I am really startled with the fact that such big companies could go bankrupt even though they have peeps working all around. How did they not see this one coming in the first place?

From what I've read (my local news portal), the real estate business seems to have been in crisis for some time when it comes to China - because the data says that there are currently as many as 90 million vacant apartments or houses in China, which is enough for comparison to accommodate the entire population of Germany or France. In other words, companies like Evergrande were building a lot more than they needed to, and now while it sounds incredible, the Chinese are tearing down those same buildings.

In addition, Evergrande did business in something that had nothing to do with real estate management (private wealth management), which is just an indication that they were greedy far beyond their means. The expected scenario is that the healthy parts of the company will be sold, while the rest will have to be taken care of by Chinese banks.

Banks such as HSBC, UBS... and investment fund BlackRock have joined in buying Evergrande's debts. This is the scenario as expected. They will buy to help avoid collapse, and next the Chinese government will take over this massive corporate reshuffle.
They need to avoid the breakdown from happening because otherwise the consequences will be enormous.

What would be the possible outcome and if it fails, what would be the consequences ? The impact would be huge but comparable to anything yet happened ?