Chinese developers, including Evergrande, are facing an unprecedented wave of liquidation suits in Hong Kong, as reported by SCMP. Foreign investors have found themselves stranded in Evergrande’s complex web of debt, with little recourse in the Chinese legal system. Evergrande (3333 HK) issued debt and funneled the money into its onshore business, making foreign bondholders subordinate to other secured interests. This situation highlights the stark differences between China's financial, legal, and political systems and those of the wider world.
The foreign investors left stranded in Evergrande’s web of debt - deep reporting by @TomHale_ @xueqiao1994 @kayewiggins. The saga sheds light on the profound differences between China’s financial, legal and political systems and those of the wider world https://t.co/aJpjEMhbuR
This was a known. Foreign investors weren't stranded any more than anyone else who buys a junk bond in a shellco. Evergrande (3333 HK) issued debt. Then put money into its onshore business. Whatever money it put in was going to be subordinated to all https://t.co/pRozSXMOqh
Big FT article on foreign bonds of Evergrande. This was a known. Evergrande (3333 HK) issued debt. Then put money into its onshore business. Whatever money it put in was going to be subordinated to all the other secured interests onshore. 3333 bondholders were effectively https://t.co/FhvEJaijnT
The foreign investors left stranded in Evergrande’s web of Chinese debt “Overseas bondholders have discovered to their cost that they have little recourse in the Chinese system when boom turns to bust” discovered? Gross negligence/incompetence https://t.co/1pHtW5HEKx
The foreign investors left stranded in Evergrande’s web of Chinese debt https://t.co/ybAkEjpr1u
Troubled Chinese developers face unprecedented wave of liquidation suits in Hong Kong https://t.co/W8H4uvMDq7
TROUBLED CHINESE DEVELOPERS FACE UNPRECEDENTED WAVE OF LIQUIDATION SUITS-SCMP