Evergrande: a turning point for China

Evergrande: a turning point for China

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This is the story of a huge change in the Chinese economy.

A story about hubris, about excess, but above anything else, it's a story about debts.

Eye-watering amounts of leverage.

The rapid expansion of China's property sector on cheap credit.

The meteoric rise of a company founded by one man who ultimately thought that he could do anything as long as he borrowed enough money.

This is a story of the failure of one of China's, and also the world's, largest real estate developers.

A property developer that came out of absolutely nowhere and within 10 years had $150bn of assets.

The most indebted property company in the world, Evergrande Group.

If Evergrande really goes under it would definitely become China's biggest ever bankruptcy case.

This story goes to the heart of China's position as the prime locomotive of global economic growth.

For decades the property sector has essentially anchored China's economy.

You can't underestimate how important the property sector is to China.

A third of China's economic output is in property.

For other countries, say US or UK, the ratio would fall below 20 per cent.

The reason for that is quite simply one of the most remarkable things that's ever happened in human