China's Evergrande files for bankruptcy | CNN
China's Evergrande files for bankruptcy | CNN
China’s Evergrande Group — once the country’s second-largest property developer — filed for bankruptcy in New York on Thursday.
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The beleaguered firm borrowed heavily and defaulted on its debt in 2021, sparking a massive property crisis in China’s economy, which continues to feel the effects.
China’s real estate sector was long seen as a vital growth engine in the world’s second-largest economy and accounted for as much as 30% of the country’s GDP.
But Evergrande’s 2021 default sent shockwaves through China’s property markets, damaging homeowners and the broader financial system in the country.
The company’s default came after Beijing began cracking down on excessive borrowing by developers in an attempt to rein in soaring housing prices.
Since Evergrande’s collapse, several other major developers in China, including Kasia, Fantasia, and Shimao Group, have defaulted on their debts.
Earlier this week, Dubai-based automobile company NWTN, announced a $500 million strategic investment in Evergrande’s EV group in exchange for a stake of about 28%.
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