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Economy & Finance

China Property Sector and Evergrande

How one developer's troubles revealed systemic risks

202112 min read

Evergrande's debt crisis marked a turning point for China's property sector, exposing the unsustainable leverage and pre-sale financing that had fueled decades of growth.

The Three Red Lines

Beijing's "three red lines" policy forced developers to deleverage, triggering a liquidity crunch across the sector. Evergrande was the most visible casualty, but dozens of other developers have since defaulted.

Originally published by MacroPolo, Paulson Institute