China Evergrande crisis: Why it matters
Chinese real estate behemoth Evergrande faced its biggest crisis in September 2021, spooking markets and prompting comparisons to the collapse of U.S. investment bank Lehman Brothers in 2008.
Since the company’s founding in 1996 by Hui Ka Yan, it has since accumulated more than $300 billion in debt, making it the world’s most indebted developer.
CNBC Senior Correspondent Emily Tan stated that Evergrande is on the brink of collapse. This would cause serious consequences for hundreds, if not thousands, of property owners and customers.
The repercussions Evergrande’s debt woes can be seen in the video.