Evergrande shares tumbled as much as 87% on the Hong Kong Stock Exchange on Monday, to as low as 22 Hong Kong cents.

China Evergrande Group last traded on the Hong Kong exchange on March 18, 2022 at 1.65 Hong Kong dollars ($0.13) per share, before being suspended on March 21.

The company also posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, with total liabilities of 2.39 trillion yuan.

  • huginn@feddit.itEnglish
    5·
    1 year ago

    The quibbling detail does not change the larger macroeconomic picture.

    If you’re in China the stock market is incredibly volatile. Buying property is the “safe bet” so everyone does it, often saving aggressively to buy.

    80% of urban households own, 20% own a second home as well.

    It doesn’t matter what the legal details are, in a broad sense the multi trillion dollar real estate industry going broke in a country that only invests in real estate is everyone’s problem.

    • InverseParallax@lemmy.worldEnglish
      21·
      1 year ago

      Yeah, but 2 points:

      1: the stock market is completely fictitious which is why it is so volatile.

      2: only poors invest in chinese real estate, anyone with any real money invests in foreign real estate