Yesterday (September 20, 2021), global markets slumped on the news that Evergrande, a Chinese real estate developer, was headed for bankruptcy. For some, it’s brought to mind the great financial crisis in 2008, when a collapsing real estate sector almost took the U.S. and global banking system down, starting with the Lehman Brothers investment bank. In other words, many now fear that Evergrande could kick off China’s “Lehman moment.”
Could Evergrande Kick Off China’s Lehman Moment?