Evergrande Bankruptcy: Chinese Real Estate Sector In Crisis As Evergrande Collapses

Key takeaways

• Chinese property developer Evergrande has filed for Chapter 15 bankruptcy protection in the U.S.
• China’s debt crisis, sparked by the property sector, is making investors uneasy that the world’s second-largest economy is faltering
• The Hang Seng Index is in a bear market, and large Chinese company stocks have fallen across the board

Is China about to have its ‘Lehman’ moment? After Chinese property developer Evergrande filed for bankruptcy protection in the U.S., that’s been the question some have whispered. The country’s debt crisis that’s rumbled on for two years is coming to a head, with China’s shadow bank sector now defaulting on payments.

China has the second-biggest economy, which has prompted fears that an economic slowdown could spark another global recession. The Chinese government says it has things under control, even though outside of the debt crisis, the post-lockdown economic recovery hasn’t taken off. Here’s the latest.