The collapse of Lehman Brother again?

     

    Evergrande is the Chinese 2nd largest property developer. The boarder of it now encompasses far more than real estate development, its business range from wealth management, making electric cars, food and drink manufacturing. It even owns one of country's football teams in Guangzhou. It expanded so aggressively, which become one of China's biggest companies to borrow more than $300billion dollars. They grew in such a crazy mass, with lots and lots of debts. Its liquidity position is eroding more quickly and by more than we previously expected.

    This remind me about the bankruptcy of Lehman brother on 2008, I hard to find my new job in Taiwan. I am struggling to find a prestigious company as many local workers were forced to take unpaid leave. Fortunately a telecommunication incorporation was willing to issue the complicated foreign worker application form and made me be to become to legal worker in Taiwan. Without this company support, I may back home to Malaysia to find another job in unknown field.

Evergrande’s liquidity position is eroding more quickly and by more than we previously expected,

It expanded aggressively to become one of China’s biggest companies by borrowing more than $300bn. Beijing announced new rules to control the amount owned by big real estate developers last year. It still struggling to meet the interest payments on its debts. The price tumbled by around 85% this year. In addition to its bond have also been downgraded by global credits rating agencies.