6 photos and stats that put into perspective the sheer size of Evergrande, China's dying real-estate giant that has $300 billion in debt
- Evergrande, one of China's biggest real-estate developers, is $300 billion in debt.
- That's the biggest debt load of any company in the world right now.
- If Evergrande defaults, analysts fear its collapse will send shockwaves through the Chinese economy.
Evergrande, once the second-largest property developer in China by sales, is being liquidated by order of a Hong Kong court on Monday.
The decision marks a conclusion to a two-year crisis for the Shenzhen-based developer, which in September 2021 signaled that it could no longer repay $300 billion in loans to hundreds of banks and financial firms.
Analysts have long feared that the embattled property giant's collapse would send shockwaves across China's already stalling economy, and potentially even destabilize foreign firms. Experts at the time called it China's "Lehman Brothers moment."
To help you understand the scale of China's former real estate darling, we've pulled together some statistics and comparisons that put it into perspective.
Evergrande has constructed more than 1,300 projects across the country, its website states. Many of these are sprawling housing complexes like the one pictured above.
Evergrande was estimated in 2021 — when it first defaulted on its loans — to have $300 billion in liabilities.
That's enough to cover the entire debts of Vietnam ($144 billion), the Philippines ($118 billion), Cambodia ($22.4 billion), Laos ($10.2 billion) combined.
The company initially tried to stave off collapse through a $23 billion debt repayment plan, but this fell apart when its founder, Hui Ka Yan, was arrested in September 2023.
Today, the company is believed to have $240 billion in assets to be liquidated, but with so many creditors in the private and government sectors, it's unclear what the process will look like.
Evergrande has projects in 280 cities across China and has built property for over 12 million homeowners, its website states.
That means more people live in Evergrande properties than in any of the following countries: Greece (population 10.4 million); Portugal (10.1 million); Cuba (11.3 million); or Sweden (10.1 million).
The developer has contracted 7.3 billion square feet of land and was developing 1.4 billion square feet of it, according to an announcement it made in February 2021.
In comparison, Manhattan has a total land area of 23 square miles or 6.4 billion square feet.
While Evergrande employed about 200,000 people, it was indirectly responsible for creating 3.8 million jobs a year, the company says.
That's nearly enough jobs to employ every single person who lives in the city of Los Angeles (population 3.82 million as of 2022), or the entire population of the state of Connecticut (population 3.6 million).
Equivalent to 1.6% of China's $17.9 trillion gross domestic product, Evergrande's debt is bigger than the GDP of any of the following countries: Finland ($282.2 billion); New Zealand ($248.1 billion); Qatar ($236.3 billion); or Hungary ($177.3 billion).
In China, the firm's collapse has been felt more keenly by prospective homeowners, who bought apartments from Evergrande before they were built.
The company continued work on a small selection of projects in China's biggest cities, but it was clear that the real estate giant was spiraling.
Many homes were delivered to customers while incomplete, and social media posts showing the conditions of these estates still frequently go viral. Property tours regularly show apartment interiors with incomplete finishings, such as uneven tiles and windows without glass, or cabinets with no doors
One viral post shows an estate in Hunan with a lift lobby filled with construction materials, wiring sticking through the ceiling, and elevators with no displays.