Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 34 , 10 November 2023


Open Access | Article

The Debt Problem of Evergrande

Jiasen Han * 1
1 RDFZ experimental international high school, Beijing 100010, China

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 34, 83-91
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Jiasen Han. The Debt Problem of Evergrande. AEMPS (2023) Vol. 34: 83-91. DOI: 10.54254/2754-1169/34/20231679.

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

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-089-9
ISBN (Online)
978-1-83558-090-5
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/34/20231679
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated