Industry Voice: Controlled deflation of the China property debt balloon

Beijing’s policy actions in the property sector seem to be containing any potential contagion effect

clock • 2 min read
Industry Voice: Controlled deflation of the China property debt balloon

What Is Happening With Evergrande?

Evergrande is the second‑largest property developer in China by contracted sales (USD 111 billion in 2020). It has a 5% market share in the sector, which, together with the supply chain, composes over a quarter of economic activity in China. The company has undergone aggressive debt‑funded growth in the past few years as the sector grew rapidly, with urbanization remaining a focus in Beijing's five‑year plans. As of June 2021, Evergrande had a total liability of more than USD 300 billion, almost triple what it had at the end of 2015.

 

 

 

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