A Hong Kong court ordered the liquidation of China Evergrande, the world’s most indebted property developer.
Evergrande has assets of about $245 billion, but owes about $300 billion.
Its demise is a “controlled collapse,” but still raises systemic risk and will hurt investors, says an analyst.
Will this affect pensions funds? Do they typically use these types of investments?
Yes, both stock and bonds. But the stock and bonds have been trading near zero for a couple years so the damage was done in '21.