Over the past two years, the company has been grappling with one crisis after another, repeatedly failing to meet its obligations on multi-billion-dollar loans.
Currently, its founder is under police surveillance, its stocks have plummeted in value, and more than a million individuals in China are anxiously waiting for their homes to be completed. On the horizon, a court in Hong Kong might soon order the liquidation of some Evergrande assets to repay frustrated foreign investors, potentially marking a new chapter in this ongoing crisis.
Evergrande has become emblematic of the challenges plaguing China’s real estate sector. Its name, along with that of other major developers like Country Garden, has become synonymous with unsustainable debt and impending financial catastrophe. Nonetheless, Evergrande is desperately clinging to survival.
In most Western countries, a failing privately-owned business like Evergrande would either be liquidated or, in extreme cases, receive government bailouts. However, China has its unique approach to handling such situations.