Evergrande is the largest real estate developer in China. It has been dominating the industry for years, but what does its future hold? It was considered as one of the most lucrative Fortune 500 companies however recently the company’s financial health has seen a massive decline.
Some experts say that the company might come out of it stronger as it is too big to fail but the majority believe that Evergrande’s time is over. For people who have invested in properties held by Evergrande, it has been nothing but a nightmare. The company has missed a lot of its debt payments and the stock price has seen a massive dump.
It was initially believed that the Chinese government had no intentions of bailing out of the company however with so many bad debts and billions of life at stake, the Chinese Government has decided to intervene. It is believed that the government is trying to restructure the company in terms of its financial structure and the hierarchal structure. This news has given hope to many people who has invested their life savings in the company. However there is a lesson here for new investors as well that you should never invest all your money in just one place no matter how secure that option seems.