Evergrande shares suspended

Trading in shares of heavily indebted China Evergrande was suspended on Monday. ?? The move comes days after some bondholders said the property developer at the centre of jitters over China's financial system had missed a second key bond interest payment. ?? Shares of its unit Evergrande Property Services Group were also suspended, the Hong Kong stock exchange said. ?? With liabilities stretching into hundreds of billions of dollars, equal to 2% of China's gross domestic product, #Evergrande has sparked concerns its woes could spread through the financial system. Reuters story: https://lnkd.in/ecdDhT-c #china #financeandeconomy #developer #trading #property

Evergrande, the second-biggest real-estate developer in China, has been dominating headlines for weeks. The company has more than?$300 billion in debt, making it the most indebted company in the world. It also has?1.6 million?undelivered apartments hanging in the balance. A bankruptcy could be disastrous for Chinese homeowners, who hold 70% of their wealth in real estate. "Over the past two or three decades, the price of Chinese real estate has gone up," Dr. Xin Sun, a senior lecturer in Chinese and East Asian Business at King's College London, told me. "This has generated a popular belief in China that real estate is always safe to invest in." I broke down 4 questions that explain the scope of China's housing market, and why Evergrande matters, for Business Insider. https://lnkd.in/dxRKqp9d

#Evergrande announced yesterday it would sell a nearly 20% stake in Shengjing Bank to a state-owned enterprise, raising about $1.5 billion. The money will be used to help settle its debts with the bank, meaning it may do little to help clear up those outstanding bond payments. Stakes are high as the #EvergrandeCrisis continues. One economist tells me that in #china, real estate — and its related industries — account for as much as 20% of the urban workforce...

Anne Stevenson-Yang co-founder of J Capital Research called Evergrande a pyramid scheme because like other developers, it excelled at pretending to create value where none actually existed.? Read Samanth Subramanian's story in Quartz https://lnkd.in/gx9SX6UQ

If riding a bucking bronco is your idea of fun, you’re going to love what the stock market has in store. Investors, consider this past week’s ride a preview. https://lnkd.in/eHE8wReF