What Evergrande signals about China’s economic future (Alicia Herrero, IPS)

Reuters

The logo of China Evergrande Group on the Evergrande Center in Shanghai, China

China’s Evergrande has long been an icon. It is not only a real estate developer, but a conglomerate that has embarked in many different ventures, including the production of electric vehicles.

Unfortunately, reaching such a huge size has come at the prize of huge leverage. Leverage is the use of debt in order to undertake an investment or project. At the same time, leverage will also multiply the potential downside risk in case the investment does not pan out. Evergrande was ‘highly leveraged,’ meaning that it has more debt than equity.

What Evergrande signals about China’s economic future – Economy and ecology | IPS Journal (ips-journal.eu)

Marco Emanuele
Marco Emanuele è appassionato di cultura della complessità, cultura della tecnologia e relazioni internazionali. Approfondisce il pensiero di Hannah Arendt, Edgar Morin, Raimon Panikkar. Marco ha insegnato Evoluzione della Democrazia e Totalitarismi, è l’editor di The Global Eye e scrive per The Science of Where Magazine. Marco Emanuele is passionate about complexity culture, technology culture and international relations. He delves into the thought of Hannah Arendt, Edgar Morin, Raimon Panikkar. He has taught Evolution of Democracy and Totalitarianisms. Marco is editor of The Global Eye and writes for The Science of Where Magazine.

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