Evergrande: why China’s property crisis matters for the world

Investors fear collapse of debt-laden firm could trigger global financial contagion

A housing complex by Evergrande
A housing complex by Evergrande in Huaian, Jiangsu
(Image credit: STR/AFP via Getty Images)

Global stocks have been hit by the heaviest sell-off in months amid fears that one of China’s biggest property developers will buckle under billions of dollars of debt.

The possible collapse of the beleaguered Evergrande Group is rattling financial markets worldwide, as some analysts warn that China may be about to face its “Lehman Brothers moment”.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us