Evergrande is China's most indebted developer...with a casual US$300 billion worth of liabilities. Yikes.
Background: Evergrande is one of China's biggest real estate developers, and it's also one of the biggest companies in the world. They've got 1.4 million apartments under development (which is more in development than Australia has full stop).
What happened: But it's into more than just property. Evergrande is also involved in electric vehicle production, film and TV production, life insurance...and it owns a whole football team. The entire company is worth US$4.2 billion.
What else: It's China's most indebted developer...with a casual US$300 billion worth of liabilities. Yikes. The company's failed to make interest payments to at least two of its largest bank creditors...and a big default from such a big company could send some serious shockwaves through the Chinese, Aussie and global economies.
💡China could be about to have its very own Lehman Brothers moment. Let's rewind to 2008. "Low" by Flo Rida was #1, The Dark Knight smashed the box office, and US investment bank, Lehman Brothers, collapsed.
💡Just like COVID-19 is highly contagious...financial issues can also be caught, thanks to globalisation - aka the link between economies across the world. So when Lehman Brothers collapsed, everyone felt it. Just like Melbourne's earthquake yesterday.
💡Already, the Evergrande saga is having a ripple effect on economies across the globe. US stocks dropped, so did Bitcoin - and even the ASX.if it falls completely, history could repeat itself.
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