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China's Evergrande files for US bankruptcy protection
China's deeply indebted property developer Evergrande has filed for bankruptcy protection in the US. Known as a Chapter 15 filing, it protects a foreign company's US assets from hungry creditors. Evergrande is on the hook for $31.7 billion dollars owed outside of China, about a tenth of its total 300 billion dollars in liabilities. The firm is planning a major restructuring of all it owes, negotiating down what it needs to pay back. But however that process procedes, the overall outlook for China's property market is looking more dim and more grim along with the rest of the economy, struggling with high youth unemployment and falling or flat prices for new homes. Real estate accounts for about a quarter of China's GDP.
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