NZ Herald | 8 Oct 2021
US Secretary of State Antony Blinken has given an alarming assessment of the Evergrande fiasco, warning the company’s downfall could affect “literally the entire world”.
The Chinese property juggernaut – which is now the most indebted real estate firm on the planet, owing around A$408 billion – continues to teeter on the brink of collapse.
In the earlier days of the Evergrande crisis, financial insiders feared it could be China’s “Lehman moment”, a reference to the 2008 GFC.
There were serious concerns it could cause a credit crunch and have a contagion effect, spilling over into other companies and sectors.