HONG KONG - With the future of Evergrande hanging in the balance, global markets have plunged on fears that one of China's biggest developers could collapse and cause a contagion throughout the world's number two economy and beyond.
In that time it has bought Guangzhou FC and turned it into a highly successful club, set up the popular Evergrande Spring mineral water and opened amusement parks it boasted were "bigger" than Disney's. It is not expected to meet those either, and while it has 30 days grace it is widely forecast to default.All eyes are on the government. The property sector is a crucial engine of the Chinese economy -- estimated to account for around a quarter of GDP -- and has played a key role in the post-pandemic recovery. Any bankruptcy of such a major company would have major repercussions.
"They do not want to actually create another moral hazard to the market, to say... 'go on, continue your business as usual of property development, at the end of the day, we will still rescue you'."
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