The delisting represents necessary market discipline after years of reckless borrowing and financial mismanagement. Beijing's crackdown on excessive debt was essential and prudent, and Evergrande's collapse shows regulators are serious about financial stability over short-term growth. The claim that Evergrande was in any way going to disrupt the robust Chinese economy was mere wishful thinking.
This delisting marks a devastating blow to investor confidence and highlights the broader economic damage from China's property crisis. The collapse has wiped out household savings, triggered mass layoffs, and created a prolonged downturn that continues dragging down the world's second-largest economy. The Evergrande saga highlights the fragility of China's economic system.
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