How Evergrande Grew and Grew, Despite Years of Red Flags

WSJ

By Brian Spegele, Julie Steinberg and Elaine Yu
Prominent American short seller Andrew Left claimed Evergrande was insolvent in 2012. PHOTO: BRENDAN MCDERMID/REUTERS

China Evergrande Group ’s path to the brink of default was littered with financial red flags. The property giant carried heavy debt loads, grew at breakneck pace and made it hard for outsiders to understand the company’s financial situation.

But a combination of financial regulators, local Chinese governments, yield-hungry investors and insiders kept the critics at bay. Ultimately, the only pressure that Evergrande couldn’t resist came from Beijing.

Publish : 2021-10-08 16:20:00

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