Evergrande Loses $2 Billion After First Trading In 17 Months

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Chinese property giant Evergrande posted a $2 billion loss on Monday, about 80% of its value, after being traded for the first time in 17 months on the Hong Kong stock market.  To the surprise of many, Chinese regulators didn’t suspend trading despite the plunge.  Financial analysts have been watching the company with bated breath for the last few years as the company has teetered on the verge of collapse, possibly causing a domino effect in China’s property sector which represents about one-fourth of China’s economy. Economists are concerned that, in turn, the entire Chinese economic system could be affected if Evergrande collapses. On August 17, Evergrande filed for U.S. Chapter 15 bankruptcy in order to reorganize, but the creditor vote on the restructure plan has been delayed until late September following the stunning drop of stock value.  Some analysts predict that China’s government will be forced to “provide further liquidity and credit support” to Evergrande.