2 ms·

From CNN: >the implications for the company’s vast business in mainland China are unclear. >Hong Kong and the mainland city of Shenzhen — where Evergrande is

From CNN: >the implications for the company’s vast business in mainland China are unclear. >Hong Kong and the mainland city of Shenzhen — where Evergrande is based — have a mutual insolvency recognition agreement, but it’s “effectively inoperative” and courts in the city are “extremely unlikely” to recognize the offshore liquidator, Silvers said. What we have here is a complex set of semi-international legal issues on the other side of the world. I don't trust HN commentary on the subject. It seems very undecided for now and will be a sticky situation for China, Hong Kong, and foreign investors.

miohtama 3y ago
China is not a rule of law country. It really does not matter what laws or treaties say, as Xi can just snap fingers and the law will be different.
Animats 3y ago
South China Morning Post is trying to figure it out.[1] "A Hong Kong court on January 29 ordered the liquidation of China’s property giant Evergrande, but the firm said it would continue to operate in a case that has become a symbol of the nation’s deepening economic woes." "Given that most of the company’s assets are onshore, we do not think that offshore bondholders would receive substantial recovery proceeds from the liquidation. In addition, it is unclear whether the Hong Kong court’s liquidation order could be enforced onshore; there has been some mutual recognition of bankruptcy proceedings between Hong Kong and mainland courts, but the enforcement is difficult in practice." Reads like their reporter called up the usual suspects for comments. There's nothing at all about Evergrande in China Daily, which means there's no official position yet. [1] https://www.scmp.com/business/china-business/article/3250215/what-does-evergrandes-liquidation-order-mean-chinas-property-sector-why-market-cheering https://www.scmp.com/business/china-business/article/3250215...
- sanxiyn 3y ago
  I am also trying to figure this out. I created a prediction market at Manifold whether a mainland Chinese court will recognize Hong Kong-appointed liquidator. Please make your bets and comments if you have insight! https://manifold.markets/SanghyeonSeo/will-hong-kongappointed-liquidator https://manifold.markets/SanghyeonSeo/will-hong-kongappointe...

miohtama 3y ago

China is not a rule of law country. It really does not matter what laws or treaties say, as Xi can just snap fingers and the law will be different.

Animats 3y ago

South China Morning Post is trying to figure it out.[1] "A Hong Kong court on January 29 ordered the liquidation of China’s property giant Evergrande, but the firm said it would continue to operate in a case that has become a symbol of the nation’s deepening economic woes." "Given that most of the company’s assets are onshore, we do not think that offshore bondholders would receive substantial recovery proceeds from the liquidation. In addition, it is unclear whether the Hong Kong court’s liquidation order could be enforced onshore; there has been some mutual recognition of bankruptcy proceedings between Hong Kong and mainland courts, but the enforcement is difficult in practice." Reads like their reporter called up the usual suspects for comments. There's nothing at all about Evergrande in China Daily, which means there's no official position yet. [1] https://www.scmp.com/business/china-business/article/3250215/what-does-evergrandes-liquidation-order-mean-chinas-property-sector-why-market-cheering https://www.scmp.com/business/china-business/article/3250215...

sanxiyn 3y ago
I am also trying to figure this out. I created a prediction market at Manifold whether a mainland Chinese court will recognize Hong Kong-appointed liquidator. Please make your bets and comments if you have insight! https://manifold.markets/SanghyeonSeo/will-hong-kongappointed-liquidator https://manifold.markets/SanghyeonSeo/will-hong-kongappointe...