China in crisis: Evergrande's fate threatens Xi Jinping's power

China in crisis: Evergrande's fate threatens Xi Jinping's power

According to a report from www.focus.de, the Hong Kong judiciary ordered the bankruptcy of the Chinese real estate giant Evergrande. This move is bad news for the regime in Beijing as it does not recognize the verdict. As an expert in the real estate market, it is important to analyze how this bankruptcy could impact the industry. Evergrande's bankruptcy is another setback for China's hot real estate industry. Since real estate development has been a major sector of China's economy, Evergrande's bankruptcy is expected to have an impact on the country's entire economy.

Evergrande's bankruptcy combined with China's highly regulated, state-controlled real estate market could lead to consolidation that favors companies unable to escape the party's grip. This could lead to a further intensification of state capitalism in China. The bankruptcy of Evergrande and other Chinese real estate companies could also affect the propensity to invest in the country's real estate sector, which in turn could affect overall economic performance.

Evergrande's bankruptcy could also put thousands of jobs and the savings of millions of people at risk, which could lead to social unrest and large-scale protests. The potential impact on the Chinese real estate market and the country's entire economy is therefore significant and could lead to a further deterioration of the economic situation in China. The bankruptcy of Evergrande represents a high-risk factor for Beijing and could bring further bad news for the country's economy.