Evergrande Brings Down The House On Wild Era For China Property

Summary

• How much international investors can recoup from Evergrande’s liquidation will depend on decisions made by governments and courts on the Chinese Mainland.
• 90% of the Evergrande’s assets are on the Mainland, making it impossible to carry out a Hong Kong court’s liquidation order without help from Mainland courts.
• Regardless of whether the liquidation process moves ahead, Evergrande will be in a virtual state of bankruptcy and its bonds will trade at less than 20% of their face value.

PEDRO PARDO/AFP via Getty Images

International bondholders have low expectations for recouping their money as the world’s most indebted developer is finally ordered to liquidate.

After months of delays, a Hong Kong judge finally pulled the trigger on China