Hong Kong developer quits the stock market as Evergrande fallout spreads
The Hong Kong developer had seen its shares plunge as much as 44% this year to their lowest level in nearly two decades as Evergrande teetered on the edge of collapse. Chinese Estates isOn September 23, Chinese Estates Holdings The stress in China’s property sector has mounted since August 2020, when Beijing curbed excessive borrowing by developers to prevent the market from overheating.Earlier this year, the Chinese government made clear that it would prioritize “common prosperity” in its policy goals and tame runaway home prices, which it has blamed for worsening income inequality and threatening economic and social stability.Evergrande’s liquidity crisis has escalated in recent months. The company warned investors of its cash flow crisis in September, saying that it could default if it was unable to raise money quickly. In the past few weeks, it missed at least two bond interest payments.
