As we’ve reported for months, the world’s largest debtor, Evergrande, is going bust. Today the firm suspended trading in Hong Kong.
Zerohedge reported late Sunday night in the US:
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We’ve been reporting on Evergrande for months. At one time the owner of Evergrande was the richest man in Asia and one investor was the richest woman in Hong Kong.
The company was the most indebted company in the world. It was a major component of the China economy. The local governments got involved in the property market and now they have trillions of debt.
Evergrande grew quickly and borrowed along the way.
The fall of Evergrande was in the works for some time.
China’s property market has been around 25% of the country’s GDP. With Evergrande and other companies failing to meet their debt payments, that sector will be negatively impacted. This is a big deal for China and the world’s economy.
Spending in the US is out of hand and it is across the world as well.