Sep 20, 2021
By Christine Ross
Financial markets sold off amid worries about Chinese property giant Evergrande’s massive debt load.
China’s second largest real estate company currently has over $305 billion in liabilities, and some worry about the potential risks to the Chinese financial system and global reach if the company folds.
China financial expert Leeland Miller warns there is more agony coming for anyone connected to Evergrande.
“The problems have been there for so long that most people watching the Chinese economy have just started ignoring them, they say look it’s a ponzi scheme but it apparently can go forever,” Miller said. “This is a company that is far, far, far, far more in debt than they can ever pay back.”
Evergrande operates and develops 1,300 real estate projects across China and employs 200,000 people.
The pandemic has paralyzed its operations and its debt equates to two percent of Chinese Gross Domestic Product.
Evergrande stocks have lost 80 percent of their value since the start of the year.