Evergrande shares tumbled as much as 87% on the Hong Kong Stock Exchange on Monday, to as low as 22 Hong Kong cents.

China Evergrande Group last traded on the Hong Kong exchange on March 18, 2022 at 1.65 Hong Kong dollars ($0.13) per share, before being suspended on March 21.

The company also posted a loss of 39.25 billion yuan ($5.38 billion) for the six months ended June, with total liabilities of 2.39 trillion yuan.

    • @nomecksEnglish
      57•1 year ago

      Take deposits for housing and use it to solicit more deposits for housing, without actually building any useable housing.

        • peopleproblemsEnglish
          6•1 year ago

          First of many, oh how the cards are falling.

      • @[email protected]English
        8•1 year ago

        Just to add, they did start building, but they just started building as construction costs were increasing, so they ended up negative on all of their construction costs.

        Construction companies famously tore down fully built buildings because evergrande couldn’t afford them…

        • @nomecksEnglish
          2•1 year ago

          They built a pile of tofu dreg buildings that’ll all fall down inside of ten years.

    • @zefiaxEnglish
      14•1 year ago

      Real estate

    • HobbitFoot English
      7•1 year ago

      They were one of several construction companies that built a ton of buildings in China fueled by municipal and corporate debt. It works great when the local economy grows.

      The Chinese economy has stopped growing at the levels to sustain the market conditions to pay back the debt. There are doubts that China could even get back to those levels of economic growth due to its aging population.

    • @Tar_alcaranEnglish
      4•1 year ago

      Nothing, but they got paid for lots and lots of houses and offices. And that a problem.