China, Real-Estate & Evergrande. Operation Damage Limitation.

At the time of writing, whispers grow that Evergrande, the Chinese real-estate developer, will default on $82.5 million in interest payments. Al-Jazeera notes how the failure to make the payments on a public bond would “trigger cross-defaults on all the company’s about $19 billion of bonds on the international capital markets” earning Evergrande a place in the history books as China’s largest ever defaulter to date, obviously sending ripple effects across the economy. This article unravels why the Chinese real-estate market poses a stern challenge to local, national and monetary officials.