So why is Evergrande filing for bankruptcy in New York and how worried should we be?

Many will have assumed this was purely a Chinese problem and the fall out would be managed in China. In a globally interconnected world this isn’t the case, as there will be spillover effects in the West, too. Evergrande was once the country’s top property developer but has been struggling since a liquidity crunch hit the country in 2021, forcing it to default on its debts. It has posted an eye-watering $80 billion loss over the past two years and has more than $300billion in total liabilities. That makes it the world’s most heavily indebted property developer and triggered fears of contagion across China and beyond. Billions of dollars worth of repayments are falling due over the next year, and it can’t afford to make them In a bid to buy time, Evergrande is now going through a complex restructuring process. As part of this, it has sought protection under Chapter 15 of the US bankruptcy code.