“China’s second largest Property Developer, EVERGRANDE, has filed for, get this, Chapter 15 Bankruptcy. Yes, you read that right, Chapter 15, which is ancillary to a primary proceeding brought in another country, typically the debtor’s home country…While EVERGRANDE is China’s #2 Property Developer, it’s bigger competitor, COUNTRY GARDEN, with annual revenues of more than $70 billion, is now also on the verge of collapse. The company’s 8% bonds due in 2024 are trading at a paltry 9 cents, signaling massive losses for the bondholders. The yield is skyrocketing, meaning nobody expects it to be paid. China’s property meltdown continues.”

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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