The Cause and Enlightenment of Evergrande’s Debt Crisis

DOI

10.2991/aebmr.k.220307.353How to use a DOI?

Keywords

Evergrande; real estate; default risk; high-leverage risk; Chinese policy

Abstract

As a representative of China’s real estate industry, Evergrande Group has been living under a highly leveraged operating condition for many years, and has expanded its assets at a speed of several times based on this. But recently, China’s leading real estate company Evergrande has attracted widespread market attention because of the rising risk of debt default. This article analyzes the emergence of the debt crisis of Evergrande Group from two aspects: ‘internal operating structure’ and ‘external market factors’. It can be concluded that the debt crisis is caused by a combination of overly aggressive business models and ignorance of market trends. At the end of the article, part of the thinking and inspiration will be presented in the discussion part in order to inspire Chinese companies.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Jiaxin Li
PY  - 2022
DA  - 2022/03/26
TI  - The Cause and Enlightenment of Evergrande’s Debt Crisis
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2149
EP  - 2152
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.353
DO  - 10.2991/aebmr.k.220307.353
ID  - Li2022
ER  -