Finance Monthly - October 2021

41 Finance Monthly. Bus i ne s s & Economy Evergrande — the second-largest property developer in China and once the most valuable real estate company in the world is on the brink of default. The dominoes have been falling one after the other for the past few months, and the tension peaked on 13 September when hundreds of people rushed into Evergrande’s headquarters in Shenzhen to demand repayment of loans. Now the company has warned of its growing default risk and is exploring options to divest assets quickly. Many analysts are now chanting “the sky is falling” and “it’s 2008 all over again” citing concerns over global contagion. But let’s see if all this doom and gloom has a root in reality. To understand what all of this means for international investors, we need to first look at the big picture and see where all of this started. Kal Stoycheff Can Become the next Brothers Evergrande Lehman