I don't think we are going to see "real" liquidations. Combined with Evergrande there would be so much property coming on the market that the clearing price would end up being 10% of previous valuations.Besides locking in 90% losses for the debt-holders the effect on apartment owners would lead to protests and maybe riots as the realization of the realizations sink in.
So, more extend-and-pretend but now with a bit of judicial oversight. I say a bit because a judge in Hong Kong probably doesn't have a lot of power on the mainland.
From The BBC, February 27/28:
China's biggest private property developer Country Garden is facing a liquidation petition, which has been filed in Hong Kong by a creditor.
A firm called Ever Credit Ltd filed the case for non-payment of a loan worth HK$1.6bn ($204.5m; £161.2m).
Country Garden, which defaulted on its overseas debt in October, says it will "resolutely oppose" the petition.
Last month, rival real estate giant China Evergrande was ordered to liquidate by a Hong Kong court.
The court has set the first hearing date for the petition on 17 May, Country Garden said in a statement to the Hong Kong Stock Exchange.
Ever Credit is a unit of Kingboard Holdings, a laminates maker and property investor.
Shares in Country Garden fell more than 10% in early Hong Kong trade following the announcement....
Previously:
January 28, 2024
"Chinese developer Evergrande to be liquidated after debt talks fail: reports"
