Wednesday, October 27

Evergrande: why the real estate giant’s downfall isn’t just a threat to the economy in China


  • Cristina J. Orgaz @cjorgaz
  • BBC News World

Evergrande is currently building a stadium for its football team, Guangzhou FC.

Image source, Getty Images

Caption,

Evergrande is currently building a stadium for its football team, Guangzhou FC.

Until a few days ago it was one of the most valuable real estate companies in the world, but the collapse of the giant Evergrande has placed it on the brink of bankruptcy and has rekindled fears of a Chinese housing bubble.

Many wonder if the case will become the “Lehman Brothers” of the second largest economy in the world.

And it is that China faces a tough decision similar to the one that the United States government had to make in 2008 when it left fall to investment bank Lehman Brothers.

That case began 13 years ago what is known as the Great Financial Crisis.


www.bbc.com

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