Not so grand: China’s Evergrande crisis raises spectre of Lehman style crash
Evergrande, with outstanding debts of R4.5-trillion, recently stopped repaying some investors and suppliers
At an eerily quiet construction site in eastern China’s Suzhou, worker Li Hongjun says property developer Evergrande’s debt crisis means he will soon run out of food. Christina Xie, who works in export in the bustling southern city of Shenzhen, fears Evergrande has swallowed her life savings.
The pair, united like legions of others by their connections to the vast China Evergrande Group, show the scale of the challenge facing the Chinese government in managing its financial woes, although economists downplay the risk of a “Lehman moment” style collapse...