Is China about to have its own ‘Lehman Brothers’ moment?
Evergrande -- one of China’s largest property developers -- is sitting on a $300B debt bomb that could severely hamper the economy.
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Just over 13 years ago, US investment bank Lehman Brothers declared bankruptcy, sending global markets into a tailspin.
Now, a similar problem is brewing in China. One of the country’s largest real estate firms, Evergrande, is on the brink of collapse.
A sinking ship
According to The Guardian, the property developer is weighed down by $300B+ in debt as China’s housing market slows (in August, national home sales were down ~20% YoY). The real estate sector is 25% of China’s economy and has benefited greatly from China’s debt-fueled boom in the past few decades.
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https://thehustle.co/09212021-china-economy/