Doubts about the financial health of some companies began simmering years earlier. Evergrande, the world’s most indebted developer, has spent much of the past decade lurching from one liquidity crisis to the next. But few imagined the Chinese Communist Party presiding over such a dramatic, sector-wide collapse.
“No one could have predicted this. If someone tells you they predicted this, they’re a genius or lying through their teeth,” said Desmond How, fixed income chief investment officer at Gaoteng Global Asset Management Ltd.
Yes, it's a fucking black swan event that a socialist government would tell a bunch of bankers to eat shit when they scam a bunch of people over their apartments. Truly an unpredictable catastrophe :cap-think:
So what happened here? I read the whole article and didn't understand any of it. Chinese developers sold something to foreign investors on the promise of repayment later, but now the Chinese government is telling them, what, they have to build the houses they sold to people before they pay off the bonds?