Video Duration 25 minutes 30 seconds
From: Inside Story

Will China rescue the troubled property group Evergrande?

One of China’s largest property firms Evergrande has debts of more than $300bn. 

Fears that one of China’s biggest property developers could default on its debt are rippling through global markets.

The vast Evergrande group has outstanding debts of more than $300bn.

Building work on many of its projects has stopped, and several investors have stopped being paid.

On Friday, the company entered a 30-day grace period to make an $83m interest payment, after missing a deadline.

The firm’s woes have been compared with the collapse of the Lehman Brothers group in the United States that preceded the 2008 financial crisis.

What would a possible collapse of this company mean for China and the world?

Presenter: Kim Vinnell

Guests:

Gareth Leather – Senior economist at Capital Economics

Victor Gao – Chair professor at Soochow University and also vice president at the Center for China and Globalization

Adam Hersh – Visiting economist at the Economic Policy Institute