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A comment on Evergrande shares plunge as much as 87% as trading resumes after 17 months. Parent comment

Re:Evergrande shares plunge as much as 87% as trading resume... by Sakos on Monday August 28, 2023 @04:09AM (#37291190)
I would have to assume the company didn't use those payments to fund the building of properties for earlier mortgages. The Ponzi scheme nature of it is the Chinese thing (not that it has anything to do with being Chinese, it's just the reality of Chinese real estate today and of the past decades). Paying for the construction of a new home in installments is something done across the world.
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Re:Evergrande shares plunge as much as 87% as trading resume... by woooooo on Monday August 28, 2023 @05:42AM (#37291751)
If previous poster's description is correct, they would have to, right? Or have a revolving fund of debt which is the same thing with extra steps. Builder doesn't get paid until after building things, the construction has to be paid for somehow.

I guess the money being in escrow puts the risk on the builder instead of the buyer.

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Re:Evergrande shares plunge as much as 87% as trading resume... by Sakos on Monday August 28, 2023 @07:04AM (#37292277)
Iirc, Evergrande took on debt to pay for construction and used the money paid by customers to service those debts. That's the missing step.
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