Victor Shih on the Evergrande crisis

China’s real estate giant Evergrande has been making headlines for a while now. Having accumulated more than 300 billion USD in debt, Evergrande – one of the largest property developers on earth – is at the brink of collapse. On Monday, trading of Evergrande’s shares was suspended on the Hong Kong stock exchange. The week before, it missed a key bond interest payment. What has caused this pressure on Evergrande? What consequences would an insolvency entail for China’s real estate and financia...