China To Let Evergrande Die With $81-B Loss

Chinese property developer Evergrande says it lost $81 billion over 2021 and 2022, showing how its massive debts remain a serious concern for the financial health of the Chinese property sector — and the world’s second-largest economy overall, Christian Shepherd and Vic Chiang reported for the Washington Post.

Photo Insert: Evergrande slid rapidly into financial distress in late 2021, causing alarm around the world as some analysts feared a collapse that could be China’s “Lehman moment” — and the start of another financial crisis.

China’s post-pandemic recovery is threatened by the sluggish real estate sector, which accounts for 25% of the economy’s growth.

Evergrande slid rapidly into financial distress in late 2021, causing alarm around the world as some analysts feared a collapse that could be China’s “Lehman moment” — and the start of another financial crisis.

Aside from the $81 billion in losses, Evergrande’s total liabilities reached $335 billion compared with just $251 billion in assets, according to the company.

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