The Evergrande Crisis: Odd Origins… Dire Consequences?

Posted On Sep 22, 2021 By Addison Wiggin

Evergrande is one of the largest real estate companies in China. The last time we were in Beijing, investors were gobbling up high-rise apartments as a store of value. In some cases, the locks on the apartments were never breached. Like a car being driven off the lot, the apartments were depreciating in value as soon a human entered them. Evergrande took full advantage of the property boom, using debt to build its business as quickly as possible. Today Evergrande has $300 billion in liabilities — debt to banks and investors — on its books … but doesn’t have enough cash on hand to pay. The company could default as early as tomorrow.

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