Investors worried about Chinese developer draw parallels with 2008 collapse of Lehman Brothers
China’s embattled property developer Evergrande Group has caused concern among investors worldwide. With $300bn (£220bn) owed to its creditors and key debt interest payments due on Thursday, the firm’s troubles have rattled global financial markets.
As the second biggest property firm operating in the largest sector of the world’s second largest economy, it is clear why investors are worried, with some drawing parallels to the 2008 collapse of Lehman Brothers. It also comes as a significant test for China’s president Xi Jinping, as Beijing attempts to curb financial risks and concentrations of wealth while trying to limit the economic impact.