THE

EVERGRANDE
CRISIS
BY
ANUBHAV GANG- 19111055
RISHABH SUNIL NAIR- 19111036
Agenda
What this report covers

01 About the group

05 Ethical Aspects
02 About the crisis
Prevention from future
06 problems
03 Impact in China and globally
About the Group
Evergrande is China's largest real estate group with
over more than 1,300 projects in more than 280 cities
across China.

Why does this group matter too much

As, it is one of the largest real estate groups in China
and many people have invested in this groups real
estate projects.

Problem of this group

Has a debt of $300 billion from various sources and
cannot repay back as it is bankrupt.
About the Crisis
Previous year the Chinese govt. introduced a new rule
for controlling lending for the real estate business. Any
company that would exceed the red line would not be
given further loans. Surprisingly, Evergrande crossed
the red line and was not able to borrow more.

The above picture is an insight about the

new rule China introduced.
Impact on China and
Global Economies
CITI analysts said China’s
financial system will be hurt
severely as approximately People who have
41 per cent of the banking invested in this
system’s assets were either
directly or indirectly group's projects will
associated with the lose their hard-
property sector as of end- earned money.
2020.

This news has led to

In the event of a global share markets
collapse, the Chinese
falling down. Analyst
economy and financial
system will suffer a named this as the
huge blow along with a next "Lehman
domino effect on Brothers". Also, it
several other domestic impacted steel prices
sectors. globally.
 1. Fake Promises to retail investors
2. Guranteed higher returns to
investors.

3.Had links to the government.

How Evergrand 4.Did not complete projects on time.
attracted investors
5.Lent more than the capacity to pay
6.promoting De-Facto Evergrande
Products.
7.Misleading investors by providing
them with gifts etc. to invest
 1. Reducing Loan amounts
2. More strict supervision from the
authorities

Ethical Aspects 3. Not indulging in money laundering

activities

which should 4. Being transparent to the investors and

have been regulators.
5. Not playing with the financial

followed statements

Thank you!