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Apart from Evergrande, there are three others in serious trouble: Anbang Insurance, Baoshang Bank, and HNA Group.
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HNA Group Co., Ltd., is a Chinese conglomerate headquartered in Haikou, Hainan, China. Founded in 2000, it was involved in numerous industries including aviation, real estate, financial services, tourism, logistics, and more. It is a part owner of Grand China Air, and owns 25% of Hilton Worldwide. Wikipedia
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HNA was placed in bankruptcy administration in February 2021 and just last month, creditors of the company voted to approve the company’s restructuring plan involving 1.1 trillion Chinese yuan ($172 billion) worth of debt.23 Nov 2021
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HNA group was one of the largest Chinese conglomerates on the world stage. They borrowed tens of billions of dollars from state run banks to fund a global acquisition binge which saw them scoop up major stakes in the likes of Hilton Worldwide and Deutsche Bank. As it turns out there was a lot of corruption within HNA and when the pandemic hit in 2020 their excessive use of leverage finally caught up with them. In early 2021 they declared bankruptcy with their creditors demanding $187 billion. The story of HNA along with Evergrande’s recent troubles are emblematic of structural problems with excessive leverage in China’s economy.
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