One thing investors should always be clear about with the CCP - as a foreigner you will always be screwed over if it benefits the CCP. The CCP is extremely hostile, even having strained relations with other Communist Countries [1].
> After two years in limbo, and with over $300 billion in debt, Evergrande was ordered by a judge in Hong Kong to liquidate, a move that will set off a race by lawyers to try to find and grab anything belonging to Evergrande that can be sold.
This will not pay out foreign holders of I.O.U.'s, because of this:
> There isn’t a lot left in Evergrande’s sprawling empire that still has value. And any assets that are valuable may be off limits because property in China has become intertwined with politics.
I hope this is a lesson to investors.
I ultimately feel sorry for the people who invested into housing and who are now stuck with mortgages they must continue to pay despite having no property. T
> Financial markets in mainland China and Hong Kong — a city that has for years been an entry point for foreign investment — have received such a blow that officials are scrambling to find policy measures like a stock market rescue fund to shore up confidence. On Sunday, they moved to stop short selling, a practice that allows investors to bet against a stock.
The CCP over-stepped and took Hong Kong, which should still be under partial UK control and therefore an attractive entry for foreign investment. The CCP caused foreign investment in Hong Kong to be withdrawn and got this ball rolling.
This is just the beginning. Almost all provinces in China are now broke and the economy has taken a very significant down-turn. Property is one of their largest investments and I am not aware of a financially good developer operating in China. There appears to already be talk of restrictions on bank withdrawals to prevent a run on the banks.