Liquidate? Liquidate what?
As few as 4 or 5 Chinese banks hold all the debt and thus all the properties. There is some foreign bond debt but it is trivial compared to the total owed to Chinese banks.
Since the Chinese banks are entities of the CCP, the CCP now owns all the failed Evergrande developments. That is of course why Xi passed the rules that effectively ended real-estate development loans.
The question of who is ext is really irrelevant since there are a host of development companies in exactly the same situation as Evergrande. The banks hold all the bad loans. The CCP controls the banks. The CCP now owns all the failed properties in all the big cities.
The people who made down payments, obtained mortgages and dutifully made payments have lost their wealth and are just screwed
I was trying to explain the Chinese mortgage system to my wife. It is very different than the US system as the borrower has to put up a lot more money, up front…before the asset (home/apartment) is even built.
That money….is all gone. The savings of a couple generations have been destroyed when these things fail.
That is not going to make the rank and file happy.
Time for a cultural revolution, I guess.