What's Next For Evergrande's Creditors and What Their Collapse Means for Global Business

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A Hong Kong court on recently ordered the liquidation of Evergrande, the heavily indebted Chinese property giant. The decision comes two years after the company defaulted, setting off a financial crisis at other developers and adding to the challenges facing the world’s second-largest economy. 

The company’s dissolution raises questions about fairness for overseas creditors — which could have wider implications for foreign businesses operating in China. 

Learn how Evergrande fell (limited access).

According to Professor Keita Shibayama, a New Financial Crisis Looms

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Since the 1980s, leading nations have relied on the twin pillars of the promotion of globalization and fiscal consolidation.  However, the coronavirus crisis is bringing about a major change of direction. 

Below Keita Shibayama, a professor at Kyoto University (Japan) and a polemicist who has always spoken out about globalism talks about a post-COVID-19 world.

Quick snippet here:

In the economic crisis now unfolding, it will be difficult to find any escape routes overseas. The impact of the pandemic will go on for quite a while. Greater international friction will further impede trade, cross-border investment, and the movement of people. As uncertainty levels not seen in the past prevail, corporations, investors, and even governments will be pressed hard to rethink their existing approaches.

Authored for Nippon.com, Shibayama goes on to say that a new financial crisis looms.

Western Hemisphere Will Recover Faster Than Advanced Economies Despite Global Turmoil

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Latin America and the Caribbean are expected to emerge from the financial crisis earlier than the advanced economies, according to the latest Regional Economic Outlook: Western Hemisphere report of the International Monetary Fund (IMF).

Expect growth the second part of 2009. While growth in advanced economies may not turn positive until the middle of 2010.

Read more here.

American Bailout Goes Global

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A financial problem that began in the United States is making its way across the globe. Now, the American bailout is going global, too, a move that could raise its cost and increase scrutiny by critics.

Read more here.