How Evergrande Became Too Big To Fail And Why Beijing Will Have To Bail It Out | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

How Evergrande Became Too Big To Fail And Why Beijing Will Have To Bail It Out

While the world is obsessing with the fate of Evergrande, and more importantly when, or if, Beijing will bail it out, another just as interesting question is how did the company many call "China's Lehman" get to the point of no return and become a global systematic risk. For a fascinating look into how we got here, we turn our readers' attention to a recent article from Caixin titled "How Evergrande Could Turn Into ‘China’s Lehman Brothers'," and which provides one of the most comprehensive insights into why Beijing will have to, even if it is kicking and screaming, bail out Evergrande which, at its core, is just one giant shadow-banking black box whose time has finally run out.

For the past two months, hundreds of people have been gathering at the 43-floor Zhuoyue Houhai Center in Shenzhen, where China Evergrande Group’s headquarters occupy 20 floors. They held banners demanding repayment of overdue loans and financial products. Police with riot shields had to be on site to keep things under control.

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If Xi wanted to bail Evergrande out he'd have announced it quick

George

I think Xi is now weighing the ramifications of an EverG collapse. "Yeah, the rich in China might get soaked which plays straight into my plan anyway. But Wall Street and Soros might just get totally demolished! Woo hoo, I could make both faceplant totally free of charge. At 100% discount, pretty tempting...

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