Could Evergrande collapse topple China's economy? | DW News

Flip_flop_politics
Published on Nov 1, 2021
In China, embattled real estate giant Evergrande faces a major moment of truth this week. The company owes an estimated 300 billion dollars, and is expected to default on bond payments.
Evergrande operates and develops 1,300 real estate projects across China and employs 200,000 people. The company financed its breakneck expansion with credit and bond issues. But the pandemic has paralyzed its operations. Its debt equates to two percent of Chinese Gross Domestic Product.
Evergrande was always thought to be 'too big to fail.' If it topples it could take a number of banks down with it, like Lehman Brothers did in 2008.
The risk of defaulting has prompted a sell-off. Evergrande stocks have lost 80 percent of their value since the start of the year.

Subscribe: https://www.youtube.com/user/deutschewelleenglish?sub_confirmation=1

For more news go to: http://www.dw.com/en/
Follow DW on social media:
â–ºFacebook: https://www.facebook.com/deutschewellenews/
â–ºTwitter: https://twitter.com/dwnews
â–ºInstagram: https://www.instagram.com/dwnews
FÃ¼r Videos in deutscher Sprache besuchen Sie: https://www.youtube.com/dwdeutsch

#Evergrande #China #RealEstate

Add to

Please Sign In or Create Account to use this feature!

Flag Video

Please Sign In or Create Account to use this feature!

Rate video

Please Sign In or Create Account to use this feature!

Rate video

Please Sign In or Create Account to use this feature!

DISCLAIMER

The content presented in this stream and/or video may be satirical in nature for entertainment purposes. It may contain realistic scenarios that may include themes of racism, anti-semitism, anti-LGBT sentiment and even elements such as death threats, all purely in the context of parody. In addition, this content may depict or refer to acts of violence in a satirical manner. Shock factor is a common and deliberate element used in these displays to emphasise the satirical message. By continuing to view this content, you acknowledge that you understand the satirical nature of this content, including the depiction of violence and the use of shock factor, and agree that you will not use or interpret this content outside of its intended context. Please remember that humour and satire are complex; they are not intended to belittle or demean, but to engage and challenge social norms through exaggeration. If you have any concerns about content, please feel free to engage in constructive dialogue or report issues to GTV staff.