Evergrande

About Evergrande

Evergrande, Chinas largest property developer, defaulted on its offshore debt in December 2021. Evergrande had over 300 billion in total liabilities. The company had used a high debt, high turnover model to become Chinas largest developer. Hundreds of thousands of homebuyers had paid for apartments that had not been built. The Chinese government refused to bail out Evergrande founder Hui Ka Yan. Hui was placed under police surveillance. Evergrande was placed into liquidation by a Hong Kong court in January 2024. The liquidation order was largely symbolic because most Evergrande assets are in mainland China. The Evergrande crisis triggered a broader collapse in Chinese real estate, with Country Garden, Sunac, and others also defaulting. The crisis has depressed Chinese economic growth.