Explained: 5 things to know about the Evergrande debt crisis – CNN

The group has gained infamy for becoming China’s most indebted developer, with more than $300 billion worth of liabilities. Over the last few weeks, it’s warned investors of cash flow issues, saying that it could default if it’s unable to raise money quickly.

“The story of Evergrande is the story of the deep [and] structural challenges to China’s economy related to debt,” said Bekink.

In a recent note, Mark Williams, Capital Economics’ chief Asia economist, said that Evergrande’s collapse “would be the biggest test that China’s financial system has faced in years.”

Explained: 5 things to know about the Evergrande debt crisis – CNN