FT News Briefing

China’s not so Evergrande

Jan 30, 2024

10:20

Snipd AI

Cryptocurrency exchange Binance allows customers to hold assets with independent banks. Hong Kong court orders the winding up of China Evergrande. Analysis of the implications for Evergrande's entities in mainland China and the broader Chinese economy. Discussion on the bankruptcy ruling and its implications. Brazil's plans for a green transition and concerns over fiscal stability.

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Quick takeaways

Traders are pressuring cryptocurrency exchange Binance to allow them to keep their assets with independent banks due to concerns about safety and regulatory oversight.

The liquidation order against Evergrande by a Hong Kong court raises uncertainties about its impact on the company's operations, potential conflicts with mainland creditors, and provides valuable insights into the issues faced by the Chinese property sector.

Deep dives

Cryptocurrency exchange customers seek security

Traders are increasingly wary of holding assets with cryptocurrency exchange Finance and are pressuring the exchange to allow them to keep their holdings at independent banks. This move reflects concerns about the safety and oversight of the exchange after it was fined by the US Department of Justice and its CEO pleaded guilty to federal crimes. Traders believe that keeping their money in a bank offers more security due to the regulatory oversight provided.

Introduction

2min

Evergrande's Liquidation and the Implications for the Chinese Economy

2min

China's Evergrande Bankruptcy Ruling and its Implications, Impact of Brexit on British Businesses, and Lula's State Capitalism Plans

5min

Brazil's government plans for a green transition and concerns over fiscal stability

3min

Binance has bowed to pressure from customers who want to hold their assets with an independent custodian, a Hong Kong court has ordered property giant China Evergrande to be wound up, and Brazil’s President Luiz Inácio Lula da Silva is returning to an old but controversial playbook to jump-start the country’s economy.

Mentioned in this podcast:

Binance bows to trader demands to keep their assets elsewhere

Chinese developer Evergrande ordered to be wound up by Hong Kong court

China Evergrande liquidation to test Hong Kong’s reach

Lula’s playbook: Brazil bets on a return to state capitalism

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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