Evergrande, the huge Chinese property developer, was worth just $275m on Monday, down 99% from its peak in 2017. It owes more than $300bn and many overseas investors will bear the brunt of the collapse.
As long as the Chinese markets can absorb the loss of Evergrande, it seems unlikely that the Government would prop up the property behemoth. As the Chinese economy is three quarters based on property values, the shock is bound to shake the Chinese economy to the core.
Image: Image: Shutterstock – Fabio Nodari
Produced By: Roderick Chambers
Featured In Story: Tim Harcourt – Industry Professor and Chief Economist IPPG at University of Technology Sydney
First aired on The Wire, Tuesday 30 January 2024