The collapse of Evergrande has had a significant impact on bond traders, who have learned a twisted lesson from the company's fall [6f616675]. As a result of Evergrande's liquidation, global investors are now left holding worthless notes and may have to wait for years to recover only a fraction of their investment [6f616675]. This has led to investors penalizing China Inc. and seeking bonds issued by other companies in Asia [6f616675]. The collapse of Evergrande serves as a cautionary tale for dollar bond investors, highlighting the importance of being cautious and learning from this experience [6f616675].
The collapse of Evergrande has also raised concerns about credit risks in the bond market [6f616675]. Investors are now more wary of investing in Chinese companies and are likely to approach bond investments with greater caution [6f616675].
Overall, the collapse of Evergrande has had far-reaching consequences, impacting not only China's real estate sector and economy but also the bond market and investor confidence [6f616675] [a465ba42].
Trading of China Evergrande Group’s shares will remain suspended, as the collapsed developer’s liquidators see no path to a restructuring owing to the firm’s massive debt and various business challenges [51d69f29]. Evergrande’s shares have been suspended from trading since January 29, following the Hong Kong High Court’s order to liquidate the world’s most indebted developer, with liabilities exceeding US$300 billion [51d69f29]. The liquidators said they have made “modest realizations of assets” of Evergrande, but pointed out that the company’s “liquidity and other internal resources remain limited” amid its “level of indebtedness and the challenges faced by the group’s business and operations” [51d69f29]. The latest quarterly report of the liquidators show the continued depressing state of affairs at Evergrande, months after the China Securities Regulatory Commission slapped the firm with a 4.2 billion yuan (US$583.4 million) fine and barred founder Hui Ka-yan from the capital markets for life after the developer was found inflating its sales by 564 billion yuan in the years preceding its eventual collapse [51d69f29].