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Evergrande May Have Become Too Big to Fail, CreditSights Says

  • Research provider maintains market-perform rating on bonds
  • A default could wreak bank havoc, cause social unrest
The Guangzhou skyline.

The Guangzhou skyline.

Photographer: ChinaFotoPress/Getty Images

Evergrande Real Estate Group Ltd., the Chinese developer that’s been on a debt-fueled buying spree in the past year, may be too big to fail, according to research firm CreditSights.

A default by Evergrande, China’s largest developer by assets, could "wreak havoc among the banks and cause social unrest among its employees and customers," Singapore-based CreditSights said in an April 13 report.