Red China facing existential debt crisis | Eastern NC Now

Fox News is reporting:

One of China's largest lenders, Evergrande Group, is facing billions of debt with the threat of default. The crisis is sending shockwaves through global financial markets, including in the U.S., where the company is being compared to Lehman Brothers, whose implosion in September 2008 sparked the Great Financial Crisis. 

FOX Business takes a look at Evergrande's business and its role in the world's financial system. 

EVERGRANDE GROUP

Evergrande is one of China's leading lenders for everything from property to autos. The company has 2.3 trillion Chinese yuan in assets, which equates to about $355 billion in USD, according to the lender, which employs 200,000 workers. 

By 2022, Evergrande expects to reach 3 trillion yuan in total assets, 1 trillion yuan of annual sales and 150 billion yuan of annual profits and taxes to become  "one of the world's top 100 companies." 

FACING DEFAULT ON BILLIONS

Rating agencies say Evergrande Group appears unlikely to be able to repay all of the 572 billion yuan ($89 billion) it owes banks and other bondholders, as reported by the Associated Press, which also noted Beijing is likely to step in to prevent systemic damage.

"I suspect the Chinese government is on top of this, and I don’t doubt they will deal with it severely, but I don’t think it will have the global effects the market is suggesting this morning,"  said Carlyle Group co-founder David Rubenstein during an appearance Monday on "Mornings With Maria."

One U.S. investor in China tells FOX Business "just about every bank in China has exposure to the company," which explains the heightened contagion fears. 

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