Chinese real estate crisis (2020–present)
Financial crisis
Chinese real estate crisis (2020–present)
The Chinese real estate crisis is an ongoing financial crisis sparked by the 2021 default of Evergrande Group. Evergrande, along with other Chinese property developers, experienced financial stress in the wake of overbuilding and subsequent new Chinese regulations on these companies' debt limits. The crisis spread beyond Evergrande in 2021 to such major property developers as Country Garden, Kaisa Group, Fantasia Holdings, Sunac, Sinic Holdings, and Modern Land. Following widespread online sharing of a letter in August 2021, in which Evergrande warned the Guangdong government that it was at risk of experiencing a cash crunch, shares plunged, impacting global markets and leading to a slowdown of foreign investment in China. The company unsuccessfully attempted to sell assets to generate money, missed several debt payments, was downgraded by international ratings agencies and finally defaulted on an offshore bond at the beginning of December 2021. The ratings agency Fitch declared the company...
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