Opinion
Look to Japan for lessons on Evergrande
The Evergrande crisis is less ‘Lehman moment’ and more domestic property and bank asset bubble, like the one which dogged the Japanese economy for decades.
Gillian TettContributorIs the saga of Evergrande akin to the collapse of Lehman Brothers in 2008? Or is the rescue of AIG that year a better parallel? Or the 1998 bailout of Long-term Capital Management?
That is a question being raised by investors as China’s second-largest property group struggles under the weight of more than $US300 billion ($413 billion) of debt (including $US20 billion in dollar-denominated bonds) and a cooling domestic property market.
Financial Times
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