Is China’s biggest property developer truly too big to fail?
Regulators want Evergrande to save itself by raising cash and cutting its debts
EARLY IN SEPTEMBER Evergrande, China’s biggest home-builder, announced the kind of sale more commonly seen in clothing stores: “30% off all properties, one month only!” Some debated whether it was a gimmick or a genuine discount. But its motivation was clear. Deep in debt, Evergrande needed cash—and quickly. Events since then have highlighted the urgency, and also raised the question of whether its struggles threaten the wider economy.
This article appeared in the Finance & economics section of the print edition under the headline “Not forever grand”
Finance & economics October 3rd 2020
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