The biggest worry in the financial market now is not the US tapering or China tech crackdown, but the possibility of default of China Evergrande Group (中国恒大集团). The report of China Evergrande’s situation is on the news every day, but many Singapore investors are not even familiar with the name. This article gives you a quick summary of what is happening and why it rocks the financial markets.
Evergrande’s situation and the default implication is complicated. Many say the default of China Evergrande will become the “Lehman Moment” – the start of a global financial crisis. According to research, even after selling some of the assets, Evergrande still has a hand in more than 778 real estate projects in over 233 Chinese cities. The company is thought to owe money to 128 banks and 121 non-banking institutions.
If you recall, the collapse of the Lehman Brothers triggered the Global Financial Crisis (GFC) in 2008. With $300 billion in