Evergrande was a legit company that built things but used those buildings to raise loans AND presell, so they were double dipping and still behind on builds. Because of the way Chinese real estate is pre-sold before the build, it’s very hard to know who is a legit real estate developer and who is running a ponzi scheme.
Evergrande was a legit company that built things but used those buildings to raise loans AND presell, so they were double dipping and still behind on builds. Because of the way Chinese real estate is pre-sold before the build, it’s very hard to know who is a legit real estate developer and who is running a ponzi scheme.