India’s Adani Is Not China Evergrande. It’s Worse

Gautam Adani’s wealth wipeout has few parallels. His industrial empire lost about $112 billion, or roughly half of its market value, just seven trading days after New York-based Hindenburg Research issued a bearish report calling the Adani Group “the largest con in corporate history” — allegations the company strenuously denies. Indian policymakers stepped in over the weekend to calm frayed nerves over concerns the turmoil would affect global investor sentiment toward the country.

Adani’s rapid unwind has surprised many. But this is not the first time emerging Asia’s conglomerates have been accused of poor governance, lofty valuation and even loftier debt piles. The likes of China Evergrande Group survived short seller attacks for years — until Beijing put its foot down. So why is Adani so vulnerable?