What's behind the collapse of Chinese property development giant Evergrande? | DW News

China Evergrande, once the country's second-largest real estate developer, is drowning in debt. Some 1.5 million people have put deposits on new homes that have yet to be built. Bankruptcy could be catastrophic.
Over the past two days, angry protesters have gathered outside the real estate firm's headquarters, demanding to know about its future. Investors are growing increasingly nervous that if Evergrande were to collapse, this could could spread to other property developers and create systemic risks for the banking system of the world's second-largest economy.

Follow DW on social media:
#Evergrande #China #RealEstate

[djahgf]

I remember my Chinese friends told me that there is a big real state bubble back in 2019. Looks like it finally busted.

[wynandcoetzee]

Imagine the phone call:" Sorry we can't finish the house you paid us to build and we can't give you your money back, but here is a parking space you can have."

[echodeng]

News came long ago there was some problem with Evergrand's capital chain. But investors kept investing. Now they must know greed has a price.

[peterhardie]

I was in a Chinese Wechat group with university professors and investors. They said there was insane buying of property on credit card rates and a massive bubble. That was 3 years ago.

[Drogonmoon]

The whole place went bust 4 years ago - just now that the lies could not be hidden any longer

[wholelottamoney]

be sure to sell before the crash this time, don't let "experts" recommend you to buy their bag.

[tijomonmathew]

Whether it is Lehman brothers or Evergrande, the rich will escape the common man who invested their savings are going to suffer.

[Josh-lpek]

Ahhh…property crisis…brings back so much 2008 memories. Buckle up bois

[astartv]

the tragedy is no one wants to sue this company because these investors deeply know that the law can't protect their property.

[tanmayasahu]

Chinese real estate and debt Market is literally a bubble waiting to pop

[mbdxflf]

That's not good for us all though. In case China's economy collapses the way American did in 2008 or the way Russian did in 1990s, that's gonna cause huge wave of consequences for other countries and their economies.

[fallguyjames]

"is the government in Beijing going to step in?" Is this a joke question. Evergrand is state owned.

[ishibi]

“We’ll see how it goes from here on.”

Oh, I think we’ll all feel how it goes, soon.

[空戰英豪-簡柏丞]

Those old ladies don't deserve pity, They've made enough money over the years
Hype prices Making housing unaffordable for young people, I think the government is doing the right thing
We're not gonna save them this time

[malignm]

“China will surpass the United States” they said.
“China erased poverty” they said.
“Communism works” they said.

[xtremity]

Everything is falling apart, pity to those who invested their retirement savings. Now it is gone.

[madsam]

Please don’t feel sad for the speculators, maybe houses will be affordable again.

[weeshuggie]

Unfinished high rise buildings are being demolished, the real estate "boom" takes on a whole new meaning!

[donwilliamson]

“What bubble?” 🥴 They have entire cities that are empty! 🥴

[BarryWaterlow]

*Nevergreen might be a more appropriate name for the company.*