Business Standard

China's 'Lehman moment'

Evergrande crisis can have global ramifications

Evergrande Group

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Business Standard Editorial Comment Mumbai
Financial stress in China’s largest real estate developer, Evergrande, has led to turmoil across global markets. Commentators are referring to this as “China’s Lehman moment”, in comparison to the 2008 bankruptcy of Lehman Brothers, which was a trigger for the global financial crisis. Around 29 per cent of China’s gross domestic product is related to real estate. Evergrande has a total debt exposure (including trade payables) of over $300 billion, which includes $19 billion in offshore US dollar-denominated bonds. The real estate giant has issued warnings that it can default on $80 million worth of interest payments, due this Wednesday.

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First Published: Sep 20 2021 | 11:22 PM IST

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