Table of Content



1. OVERVIEW
1.1. Catalyst
1.2. Summary

2. EVERGRANDE HAS EXPERIENCED A FALL FROM GRACE
2.1. Evergrande is China’s second largest property developer
2.1.1. Evergrande has undertaken some of the country’s most ambitious projects
2.2. Excessive borrowing has placed Evergrande in hot water
2.2.1. Evergrande isn’t the only company struggling

3. CHINA’S CONSTRUCTION AND REAL ESTATE INDUSTRIES ARE WROUGHT WITH PROBLEMS
3.1. China experienced a property bubble between 2005-2011
3.2. China’s construction industry is of great importance to its economy as a whole
3.3. The three red line strategy aimed to resolve issues

4. POTENTIAL OUTCOMES ARE BLEAK AND WILL NOT SOLVE UNDERLYING ISSUES
4.1. There are arguments that Evergrande is too big to fail
4.2. If Evergrande isn’t saved, its downfall will drag down the Chinese/global economy
4.2.1. Suppliers may suffer from the ripple effect
4.2.2. Impact on potential homeowners would be huge if the company collapses
4.3. Property tax could offer a long-term solution to fundamental issues

5. APPENDIX
5.1. Abbreviations and acronyms
5.2. Sources
5.3. Further reading

6. ASK THE ANALYST

7. ABOUT MARKETLINE



List of Figures

List of Figures
Figure 1: The Guangzhou Evergrande Stadium is a major infrastructure project
Figure 2: Evergrande Debt to Equity Ratio
Figure 3: Real estate prices have begun to surge once again
Figure 4: China, Residential Construction Output by Project Type (Real, USD Million), 2016-2025
Figure 5: Police keep watch outside the Evergrande headquarters in Shenzhen to prevent social unrest

List of Tables

List of Tables
Table 1: Color scheme illustrating limits on the extent to which Chinese real estate developers can grow annual debt