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by ButtSpark69 1688 days ago
How sure are you their assets are really worth 2T? Isn't that a lot of the question here?
2 comments
throwaway2037 1688 days ago
You are right to ask that question. Generally, real estate is considered a low liquidity asset. I wonder how much their real estate assets are discounted during buy-side analysis.

From Wiki (https://en.wikipedia.org/wiki/Evergrande_Group), I looked at the source for total assets: https://finance.yahoo.com/quote/3333.HK/balance-sheet?p=3333...

At end of 2020: Total assets: 2.3T CNY -> 359B USD (@ 6.40 CNY/USD) Total debt : 0.7T CNY -> 109B USD (@ 6.40 CNY/USD)

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oarabbus_ 1688 days ago
Well, we can be reasonably confident their assets will not be worth $2T if they have to fire sale them
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_0ffh 1687 days ago
As it seems like virtually all buying in this market comes from developers and investors hoping to sell at a higher price later, they'll probably be lucky to get a fraction of that.
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