Evergrande: bankruptcy drags on

Evergrande housing complex vin Huai’an, Jiangsu: the group’s bankruptcy drags on

Evergrande has run out of money – that much is clear. The company cannot even present its annual balance sheet. This process shows: Large corporate bankruptcies often do not end with bankruptcy proceedings. Especially in China, an agonizingly long phase of denial of reality usually follows instead.

What cannot be, is not spoken openly, either. Chinese real estate group Evergrande has been effectively bankrupt for months (China.Table reported). Yet no company representative and no Chinese official are even uttering the word „bankruptcy“, even though the criteria has been met long ago. But resulting turmoil on the financial market would simply be too great if news of the formal bankruptcy ran through all media channels. That’s why everyone involved is still trying to scrape by somehow.

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