CBiBank Research Department: China's most indebted real estate developer, Evergrande Group, has filed for bankruptcy protection in the U.S., seeking a $19 billion debt restructuring.

CBiBank Research Department: The large real estate developer, China Evergrande, applied for bankruptcy protection on Thursday, more than two years after defaulting on its debt. As Evergrande Group submitted its bankruptcy application to the U.S. Bankruptcy Court for the Southern District of New York, the company is still striving to resolve its massive debt issues. As of the end of last year, the total liabilities of Evergrande and its subsidiaries owning assets in the U.S. reached $335 billion. Another major developer, Country Garden, facing the risk of default for failing to make payments and holding $200 billion in unpaid bills, is also at risk of default.
Since the outbreak of the real estate debt crisis in China in mid-2021, real estate companies accounting for 40% of local housing sales have defaulted, most of which are private developers. This indicates that the Chinese real estate industry is beginning to decline slowly and may now pose a threat to China's overall economy.