As the saying goes, “History doesn’t repeat, it rhymes.” Thirteen years ago this week, the collapse of Lehman Bros. in the United States sent shockwaves throughout the global financial system. Now, those same markets have been roiled amid growing concern China Evergrande Group — one of China’s largest property developers — would default on its massive $300 billion in debt, the highest for any publicly traded real estate manager or developer globally, according to S&P Global Market Intelligence.
On Monday, Sept. 20, Evergrande stock dropped 10 percent in Hong Kong to HK$2.28 ($0.29) per share and the stock is down 84 percent so far this year, below its 2009 IPO price of HK$3.50 ($0.45), reports CNN Business. According to Bloomberg News, Evergrande was supposed to repay interest on some bank loans on Monday, but that Chinese authorities have informed major banks those payments won’t be received. And it’s unclear how much of its obligations Evergrande will be