Fears that one of China’s biggest property developers could default on its debt are rippling through global markets.
The vast Evergrande group has outstanding debts of more than $300 billion.
Building work on many of its projects has stopped, and several investors have stopped getting paid.
On Friday, the company entered a 30-day grace period to make an $83 million interest payment, after missing a deadline.
The firm’s woes have been compared to the collapse of the Lehman Brothers group in the U.S. in 2008.
So, what would a possible collapse of this company mean for China and the world?
Presenter: Kim Vinnell
Gareth Leather – Senior Economist at Capital Economics.
Victor Gao – Chair Professor at Soochow University, and also Vice President at the Centre for China and Globalisation.
Adam Hersh – Visiting Economist at the Economic Policy Institute.