As if the Chinese economy didn’t have enough to contend with: Slowing growth, falling prices, tanking stock markets, a shrinking workforce and fleeing foreign investors.
A Hong Kong court added another cause for concern Monday: It ordered the liquidation of China Evergrande Group, the world’s most indebted property developer with more than $300 billion in liabilities and hundreds of unfinished apartment complexes across the country.
It is unclear whether Chinese authorities will recognize the Hong Kong court’s ruling and allow international creditors to seize the company’s assets. But the decision will fuel fears about the state of China’s property market — which makes up about one-fifth of the economy — and could ripple through the world’s second largest economy, already flailing.
“Nobody believes the economic situation is going to get any better,” said Alicia…
