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The Debt Problem of Evergrande
- 1 RDFZ experimental international high school, Beijing 100010, China
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Abstract
Evergrande Real Estate Group Co., Ltd. was once a leading enterprise in China's real estate industry and one of the Fortune 500 companies. However, in the past few years, Evergrande fell into a huge debt crisis and was on the brink of bankruptcy. Although with the joint efforts of the leaders and employees of Evergrande Group, all core assets of Evergrande Group have been preserved, which allowing the company to continue normal operations. But the debt issue remains the biggest problem for Evergrande Group. This study conducted a survey and analysis based on the performance of Evergrande over the past 30 years, attempting to identify the reasons for Evergrande's two trillion yuan debt crisis. Based on the theories of economists and entrepreneurs' experiences, a solution to Evergrande's debt crisis can be integrated. This study will conduct a detailed analysis of the three main causes of Evergrande's debt crisis, including high leverage profit model, diversified development, and excessive dividends. The author will collect resources through online search, book browsing, and interviews with professionals, and then present them in the form of papers.
Keywords
China Evergrande Group, 2 trillion RMB debt, high leverage profit model, diversified development, high dividend
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Cite this article
Han,J. (2023). The Debt Problem of Evergrande. Advances in Economics, Management and Political Sciences,34,83-91.
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