Hong Kong court orders liquidation of Chinese real estate giant Evergrande. Decision likely to have repercussions on China's beleaguered real estate sector and financial markets.
Decision will test foreign investors' confidence that China will treat them fairly. It could help stimulate or further slow the flow of money into Chinese markets, when global confidence in China is already weakened. The company's shares, which were listed in Hong Kong, caused a drop of more than 20% before trading was halted. It is unclear whether the liquidation will be recognized by mainland China, something that has not historically happened.