[Video] Evergrande crashes: What happens next?
Evergrande’s default was just the start. Its collapse exposed systemic risks in China’s housing market and economy. How did a single company spark a chain reaction, and what’s next? ThinkChina’s Lu Lingming finds out.
Evergrande’s fall marks the symbolic end of China’s real estate boom. The developer was once a nationwide empire with projects across the country and a market value that soared above US$50 billion. But by 2021, its debt had ballooned past US$300 billion, cash flows were drying up, and millions of homebuyers were left with stalled projects.
Its troubles deepened after Chinese regulators introduced the “three red lines” policy, limiting excessive borrowing and cutting off a critical source of refinancing. Unable to stabilise its finances, Evergrande eventually defaulted on multiple debt obligations and was officially delisted from the Hong Kong Stock Exchange in 2025.
Its downfall sent shockwaves through the property sector and broader economy, underscoring systemic vulnerabilities in China’s housing market. To understand the broader consequences, we spoke with Dr Chen Bo, senior research fellow at the East Asian Institute, National University of Singapore. He explains why Evergrande collapsed and how the property crisis has affected China’s overall economy and ordinary families. Watch the video to learn more.
The video was filmed at Studio+65.
