6 photos and stats that put into perspective the sheer size of Evergrande, China's embattled real-estate giant that has $300 billion in debt

·4 min read
China Evergrande property development
Evergrande is China's second-biggest property developer. Noel Celis/Getty Images
  • 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.

  • See more stories on Insider's business page.

Evergrande is the second-largest property developer in China by sales.

Evergrande buildings
A property developed by Evergrande Group is seen in Huai 'an, Jiangsu Province, on September 17, 2021. Zhao Qirui / Costfoto/Barcroft Media via Getty Images

It's also on the brink of defaulting on its loans.

The developer owes money to hundreds of banks and financial firms, and if it fails to pay its loans, those companies will also feel the crunch.

Analysts are worried that if the company collapses, it could shockwaves across China's economy. Some experts are calling it China's "Lehman Brothers moment."

To help you understand the scale of China's real-estate giant, we've pulled together some statistics and comparisons that put it into perspective.

1. Evergrande owns more than 1,300 real estate projects in China.

Evergrande
An Evergrande housing complex in China's eastern Jiangsu province STR/ Getty images

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.

2. Evergrande is $300 billion in debt, the most out of any company in the world.

Evergrande HQ
A man walks past a sign with the characters HengDa (Evergrande in Chinese) at the entrance of a residential complex built by Evergrande on September 22, 2021 in Beijing, China Andrea Verdelli/Getty Images

Evergrande is estimated to have $300 billion in liabilities.

That's enough to cover the entire debts of Peru ($93.3 billion), the Philippines ($97 billion), Iceland ($20.3 billion), Bulgaria ($46.5 billion), and Panama ($31.7 billion) combined.

3. Around 12 million homeowners live in properties built by Evergrande.

China Evergrande property development
A man walks past a housing complex by Chinese property developer Evergrande in Guangzhou, China's southern Guangdong province. Noel Celis/Getty Images

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).

4. Evergrande manages enough land to cover the entire area of Manhattan.

Evergrande stadium
Construction underway for Guangzhou Evergrande football stadium in Guangzhou in China's southern Guangdong province. STR/AFP via Getty Images

The developer has contracted 7.3 billion square feet of land, and is currently developing 1.4 billion square feet of it, according to an announcement it made in February.

In comparison, Manhattan has a total land area of 23 square miles, or 6.4 billion square feet.

5. Evergrande is indirectly responsible for 3.8 million jobs, which is enough to employ all of Los Angeles.

Evergrande employees
People gather at the Evergrande headquarters building in Shenzhen, southeastern China on September 15, 2021, as the Chinese property giant said it is facing unprecedented difficulties but denied rumours that it is about to go under. NOEL CELIS/AFP via Getty Images

While Evergrande employs about 200,000 people, it is 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 3.98 million as of 2019), or the entire population of the state of Connecticut (population 3.5 million).

6. Evergrande's debt load is equivalent to 2% of China's GDP.

Evergrande
The logo of Evergrande Real Estate on a crane in Hangzhou, east China's Zhejiang Province Long Wei/Costfoto/Barcroft Media via Getty Images

Equivalent to 2% of China's $14.7 trillion gross domestic product, Evergrande's debt is bigger than the GDP of any of the following countries: Finland ($271.2 billion); New Zealand ($212.5 billion); Qatar ($146.4 billion); or Hungary ($155 billion).

Read the original article on Business Insider

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting