If you have been following the market lately, you probably know about the crash of Evergrande. But first, what’s Evergrande and what does this has anything to do with the US’ market.
First, The Evergrande Group is a Fortune 500 real-estate developer with headquarters in Shenzhen, Guangdong, China. It was founded by Hui Ka Yan in 1996 in Guangzhou. It’s a big business with sales of over $100 billion and adjusted core profits of approximately $5 billion with report came out in 2020.
Second, At its core, Evergrande is a homebuilder business but its website states that it has over 1,300 projects across 280+ cities. This includes investment in EVs, media, theme parks, mineral miner and so on.
Because of all of its revenue Evergrande became the world’s most heavily-indebted developer, with a debt load of over $100 billion and over $300 billion in liabilities.
