Marketplace All-in-One Chinese property giant Evergrande delists
Aug 25, 2025
Chinese property giant Evergrande has faced a dramatic fall from grace, accumulating $300 billion in debt before its delisting from the Hong Kong Stock Exchange. The podcast delves into the regulatory shifts that led to this collapse and its wider implications for the Chinese economy. Additionally, it highlights the ongoing trade tensions between the U.S. and China over rare earths, while discussing Australia's strategic efforts to challenge China’s dominance in this critical minerals market, amidst environmental concerns.
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Evergrande's Debt-Fueled Rise And Fall
- Evergrande grew into a giant by building millions of homes across almost 300 Chinese cities and borrowing heavily to fuel expansion.
- When Beijing tightened borrowing rules in 2020, the firm's $300 billion debt load became unsustainable and sparked defaults and market turmoil.
Construction's Outsize Role In China's Economy
- Construction accounted for up to a third of China's GDP at times, making large developers systemically important to the economy.
- Evergrande's collapse therefore had outsized economic and market implications across China.
Regulatory Shift Triggered The Crisis
- Policy changes by Beijing to rein in developer leverage triggered investor panic and loan recalls that crushed Evergrande's liquidity.
- The firm's 2021 default and volatile share price amplified financial pressure and led to delisting from Hong Kong.