China's Evergrande files for bankruptcy | CNN Business
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China’s Evergrande Group — once the country’s second-largest property developer — filed for bankruptcy in New York on Thursday.
  • AutoTL;DR@lemmings.worldBEnglish
    2·
    1 year ago

    This is the best summary I could come up with:

    The beleaguered firm borrowed heavily and defaulted on its debt in 2021, sparking a massive property crisis in China’s economy, which continues to feel the effects.

    China’s real estate sector was long seen as a vital growth engine in the world’s second-largest economy and accounted for as much as 30% of the country’s GDP.

    But Evergrande’s 2021 default sent shockwaves through China’s property markets, damaging homeowners and the broader financial system in the country.

    The company’s default came after Beijing began cracking down on excessive borrowing by developers in an attempt to rein in soaring housing prices.

    Since Evergrande’s collapse, several other major developers in China, including Kasia, Fantasia, and Shimao Group, have defaulted on their debts.

    Earlier this week, Dubai-based automobile company NWTN, announced a $500 million strategic investment in Evergrande’s EV group in exchange for a stake of about 28%.

    The original article contains 502 words, the summary contains 142 words. Saved 72%. I’m a bot and I’m open source!

    • PolandIsAStateOfMind@lemmy.ml
      53·
      1 year ago

      No, it is in the process of being dismantled by the government for the last 2 or 3 years after it flopped and could potentially cause crisis. It had nothing to do with random junk production.

  • Lemmylaugh@lemmy.ml
    1·
    1 year ago

    If they are that important, hopefully the wealthy will fund them. Sounds like it’s needed to help keep house prices down.

    • sic_1@feddit.de
      11·
      1 year ago

      Low probability of that. Evergrande is so big, it can’t be compared to any western reference. For example, they built entire cities for millions of people that are completely deserted and are such bad quality most of it crumbles at a touch. Nobody will save that. Also, the Chinese people’s saving and retirement system is based on real estate. The Chinese government will try to avoid the fallout but very certainly not the way we western people are used to.

      • zephyreks@programming.dev
        2·
        1 year ago

        Honestly, we could use more of that over in Canada. We have a housing crisis that needed to be fixed yesterday. Any roof is better than no roof.

        • sic_1@feddit.de
          11·
          1 year ago

          I can imagine. But even if a 10 million luxury apartments is sold at half price, I doubt that will help with that problem.